Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Expanding high-speed internet access as part of the 2021 U.S. infrastructure bill is likely to significantly affect both the supply and demand sides of the

Expanding high-speed internet access as part of the 2021 U.S. infrastructure bill is likely to significantly affect both the supply and demand sides of the economy over time. On the supply side, better internet infrastructure improves productivity by making businesses more efficient and lowering operational costs, which increases the overall output of the economy. On the demand side, the project boosts economic activity by creating jobs in construction and technology, which increases workers' income and spending. This expansion not only raises government spending initially but also encourages more business investments in areas that benefit from better connectivity. Over a 10-year period, the impact on aggregate supply is expected to be greater than on aggregate demand because the technological improvements from enhanced internet access will lead to long-term increases in efficiency and productivity across many sectors. This results in more sustained economic growth than the initial spike in demand caused by increased government spending and consumer spending

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Political Economy

Authors: Thomas Oatley

6th Edition

1138490741, 9781138490741

More Books

Students also viewed these Economics questions