If, in response to a weak employment picture, a law was passed to increase the number of lanes on all interstate highways by at least one lane this would likely
A)increase aggregate demand.
B)increase aggregate supply.
C)decrease aggregate demand.
D)decrease aggregate supply.

Question

Quizplus · Accepted Answer

Increasing the number of lanes on interstate highways would likely stimulate economic activity and create jobs, especially in the construction industry. This would increase the aggregate demand in the short run as the government spending on this infrastructure project would increase the overall spending in the economy.

If, in Response to a Weak Employment Picture, a Law