In 2017, in proposing a $1 trillion increase in government spending on infrastructure, President Trump argued that
Question:
In 2017, in proposing a $1 trillion increase in government spending on infrastructure, President Trump argued that the spending would increase total employment in the United States.
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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a No increases in federal spending will not increase real GDP if the economy experiences full ...View the full answer
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