In its 2009 and 2010 budgets, the Canadian government significantly increased its planned spending on infrastructure projects
Question:
In its 2009 and 2010 budgets, the Canadian government significantly increased its planned spending on infrastructure projects in order to fight the existing recession and protect jobs.
a. Explain why such a policy may "create" jobs.
b. Is such a policy equally likely to create jobs during a recession as when the economy is already operating at potential output, as it was by mid-2016? Explain.
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