In 2009, Congress passed legislation providing states with funds to build roads and bridges. It also instituted tax cuts. Which of these shifts aggregate demand right?
A)Only the increased funding for states
B)Only the tax cuts
C)Both the increased funding for states and the tax cuts
D)Neither the increased funding for states nor the tax cuts

Question

Quizplus · Accepted Answer

Both the increased funding for states to build roads and bridges and the tax cuts would shift aggregate demand to the right. The increased funding directly injects money into the economy, boosting demand for construction and related industries. Tax cuts increase disposable income for consumers and businesses, leading to higher spending and investment.

In 2009, Congress Passed Legislation Providing States with Funds to Build