Since government spending is part of gdp this spending in


If the Federal government decides to use discretionary fiscal policy to increase real GDP by providing $100 billion in extra government spending to build, repair, and upgrade bridges around the country. One of these bridge projects, costing $50 million, takes place in your town. Since government spending is part of GDP, this spending in your town delivers a $50 million boost to GDP. What will happen in and around your town as a result of this project which will generate additional increases to GDP?

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Business Economics: Since government spending is part of gdp this spending in
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