Graph the impact of the aforementioned on the economy by shifting the appropriate curve(s). 

1. Suppose the US government has decided to expand its budget this year and spend on upgrading all of the main bridges in the eastern United states. Use the graph below to show the impact of the aforementioned on the economy by shifting the appropriate curve(s).

 

2. A favorable economic outlook is shared in an announcement in the news by the government. Consumers are now confident about the future strength of the economy and the availability of jobs; illustrate the effect of this on the American economy by shifting the aggregate demand (AD) curve in the appropriate direction.

Answer rating: 100% (QA)

1 Government Spending on Bridge Upgrades This scenario involves an increase in government spending o... View the full answer