asked 56.7k views
0 votes
How is increasing government spending on more roads and airports a good idea/ bad idea

asked
User Duozmo
by
8.1k points

1 Answer

5 votes

Answer:

Bad

Step-by-step explanation:

The increased government spending may create a multiplier effect. If the government spending causes the unemployed to gain jobs then they will have more income to spend leading to a further increase in aggregate demand.

answered
User Wes Nolte
by
8.4k points
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