Business, 27.03.2020 16:41 naiomireyes74p2aybs

In 2017, in proposing a $1 trillion increase in government spending on infrastructure, President Trump argued that the spending would increase total employment in the United States

Source: Ted Mann and Michael C. Bender, "President Trump to Launch Push for Infrastructure Investment," Wall Street Journal, June 4, 2017.

In the short run, increases in federal spending will increase real GDP and employment if:
A. the economy is producing at less than its potential output and has some cyclical unemployment.
B. wages and prices do not change.
C. the economy is experiencing inflation.
D. the price level remains stable.

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