Question
2. In November 2021, President Biden signed into law legislation to spend $1 trillion on repairing the nation's crumbling infrastructure, including roads, bridges, transit systems,
2. In November 2021, President Biden signed into law legislation to spend $1 trillion on repairing the nation's crumbling infrastructure, including roads, bridges, transit systems, and other forms of infrastructure. (Fixing the nation's crumbling infrastructure seems to be a goal of every president; President Trump had proposed similar legislation in early2018).
a. Is $1.9 trillion a big number? Explain how you know.
b. Is President Biden's plan appropriate fiscal policy for the current economic situation (in November 2021, the unemployment rate was over 6%)? Explain your answer in terms of Aggregate Demand-Aggregate Supply.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started