E4 In the fall of 2021, the United States enacted a $1.2 trillion infrastructure bill that provided for replacement of drinking water systems; expansion of high-speed internet access; repair and rebuilding of roads, bridges, and power systems; and expanded passenger rail service. Select one of these projects and discuss the following. How might this project affect aggregate supply and aggregate demand over time? Review section 23-3b in the textbook and discuss which of the four factors presented explains the shift on aggregate demand the project may have. Review Table 2 in Section 23-4c in the textbook and discuss which of the four factors presented explains the shift on aggregate supply the project may have. After 10 years, do you believe that the project will result in a greater shift in demand or a greater shift in supply? Explain your reasoning.

ENGR.ECONOMIC ANALYSIS
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 E4

In the fall of 2021, the United States enacted a $1.2 trillion infrastructure bill that provided for replacement of drinking water systems; expansion of high-speed internet access; repair and rebuilding of roads, bridges, and power systems; and expanded passenger rail service. Select one of these projects and discuss the following.

  • How might this project affect aggregate supply and aggregate demand over time?
  • Review section 23-3b in the textbook and discuss which of the four factors presented explains the shift on aggregate demand the project may have.
  • Review Table 2 in Section 23-4c in the textbook and discuss which of the four factors presented explains the shift on aggregate supply the project may have.
  • After 10 years, do you believe that the project will result in a greater shift in demand or a greater shift in supply? Explain your reasoning.    
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