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Assume that the Singaporean government has started to build new aged care homes. The activity will result in an increase in government spending over the

Assume that the Singaporean government has started to build new aged care homes. The activity will result in an increase in government spending over the next eight to ten years. Discuss the before and after effect of the new project on the economy (Hint: discuss the transmission mechanism and the impact of government spending on the economy).

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