Suppose RGDP is below the full-employment level. If the government spends the same amount of money on either project, how will the results differ if the government chooses to improve the country’s transportation and communication systems rather than build a naval base in West Virginia? A. The increase in RGDP will be greater, and the increase in the price level will be smaller. B. The increase in RGDP will be greater, but so will the increase in the price level. C. The increase in RGDP will be smaller, but the increase in the price level will be larger.

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tinyclown · Answer

D. The increase in RGDP will be smaller and so will the increase in the price level. E. The effects of the two projects will be identical as long as the amount spent is the same.

tinyclown · Answer

like i know demand would increase either way,,, would like supply also increase ?? because like improvements in transp and communication would decrease production costs right ??

tinyclown · Answer

i feel like its A ???

tinyclown · Answer

it was a i m a genius