Problem
Suppose that the government makes a onetime investment in new public school buildings, which results in a one-time reduction in consumption. The new public school buildings increase the efficiency with which human capital is accumulated. Determine the effects of this on the paths of aggregate consumption and aggregate output over time. Is it clear that this investment in new schools is a good idea? Explain.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.