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26-11-2021
Business

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How is increasing government spending on more roads and airports a good idea/ bad idea

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LvMyHbby LvMyHbby

26-11-2021

Answer:

Bad

Explanation:

The increased government spending may create a multiplier effect. If the government spending causes the unemployed to gain jobs then they will have more income to spend leading to a further increase in aggregate demand.

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