Suppose that the federal administration plans to fight a deep, ongoing recession with a nationwide plan of increasing infrastructure. Congress approves it and adjusts the budget accordingly to put the plan in motion immediately.

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03-07-2022
Social Studies

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Suppose that the federal administration plans to fight a deep, ongoing recession with a nationwide plan of increasing infrastructure. Congress approves it and adjusts the budget accordingly to put the plan in motion immediately.

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Martebi Martebi · Answer 1 · 2022-07-04T19:03:22+02:00

In the case above, what will happen to the level of government spending is an increase in it.

The aggregate demand curve is one where the curve shifts to the right (an increase in AD).
The level of unemployment will Decreases.

What is government Spending?

Government spending is known to be the process of the aggregate demand and it is one that functions as a tool to handle the recessionary issues.

Therefore, In the case above, what will happen to the level of government spending is an increase in it.

The aggregate demand curve is one where the curve shifts to the right (an increase in AD).
The level of unemployment will Decreases.

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