Economics Today 18th Edition by Roger LeRoy Miller

تمرين 6

The U.S. government is in the midst of spending more than $1 billion on seven buildings containing more than 100,000 square feet of space to be used for study of infectious diseases. Prior to the government's decision to construct these buildings, a few universities had been planning to build essentially the same facilities using privately obtained funds. After construction on the government buildings began, however, the universities dropped their plans. Evaluate whether the government's $1 billion expenditure is actually likely to push U.S. real GDP above the level it would have reached in the absence of the government's construction spree.