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5.5 Crowding Out

Part of Long-Run Consequences of Stabilization Policies in AP® Macroeconomics. Read the opening section, then create a free account for the full interactive lesson, practice, and progress tracking.

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What is Crowding Out?

The continuous borrowing of money in order to maintain government spending not only affects the government’s effective spending, but also has significant impacts on economic growth. This process is called crowding out.

In this unit

8 lessons

  1. 5.1Fiscal and Monetary Policy Actions in the Short RunPreview lesson
  2. 5.2.1The Short-run Phillips CurvePreview lesson
  3. 5.2.2The Long-run Phillips CurvePreview lesson
  4. 5.3Money Growth and InflationPreview lesson
  5. 5.4Government Deficits and the National DebtPreview lesson
  6. 5.5Crowding OutThis lesson
  7. 5.6Economic GrowthPreview lesson
  8. 5.7Public Policy and Economic GrowthPreview lesson

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