An improvement in the infrastructure of a country,ceteris paribus,should result in a lower price level and increased employment.
An increase in the level of infrastructure will shift the AS to the right,lowering the price level and increasing output.

Question

Quizplus · Accepted Answer

An improvement in infrastructure typically leads to an increase in productivity and efficiency, which can result in lower costs for firms and lower prices for consumers. Additionally, the increase in output may lead to increased employment opportunities in the economy. This can be represented by a shift in the aggregate supply (AS) curve to the right, resulting in lower prices and higher output.

An Improvement in the Infrastructure of a Country,ceteris Paribus,should Result