In 2019, President Trump proposed a $2 trillion increase in government spending on infrastructure, such as highways,

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In 2019, President Trump proposed a $2 trillion increase in government spending on infrastructure, such as highways, bridges, and airports.

a. Will increases in federal spending always increase real GDP and employment in the short run? Briefly explain.

b. Are there circumstances in which the federal government would not want to increase its spending, even if the result was to increase real GDP and employment in the short run?

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Economics

ISBN: 9780135957554

8th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

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Question Posted: Oct 17, 2023 09:35 AM

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In 2019, President Trump proposed a $2 trillion increase in government spending on infrastructure, such as highways,

Question:

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a Increases in federal spending on infrastructure projects can have a positive impact on real GDP and employment in the short run When the government ...View the full answer

Economics

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