Progressives argue that what the book calls useful government spending can increase GDP without reducing private investment. An example of useful government spending according to the book is

Question

Quizplus · Accepted Answer

Building highways can increase productivity and help reduce transportation costs, which can lead to economic growth without reducing private investment. The other options (building pyramids, buying military equipment, and fighting wars) do not lead to the same economic benefits and may even be detrimental to the economy.

Progressives Argue That What the Book Calls Useful Government Spending