All else constant,an increase in the amount of government spending on roads and bridges would cause GDP in the domestic economy to increase.

Question

Quizplus · Accepted Answer

Government spending on roads and bridges will directly increase the output in the construction industry and indirectly stimulate demand in other sectors such as transportation, manufacturing, and retail. Therefore, the increase in government spending on roads and bridges will lead to an increase in GDP in the domestic economy.

All Else Constant,an Increase in the Amount of Government Spending