What effect does budget deficit have on AD??

I think ....
That if budget deficit means ecess of budget exp. Over budget receipt it means government's expenditure is increasing which is a component of AD[C+I+G+(X-M)] so AD also increases

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I m not sure its correct or not

Ans . budgetary deficit means government expenditure is more then govt receipt it means govt is making exp on public welfare which means factor income of factors increases (due to more govt exp ) factor income increase aggregate demand in the economy
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What are you looking for?