Trumponomics - Infrastructure Spending
Following Donald Trump's surprise US election victory, this week's EzyEconomics News puts to one side his more controversial rhetoric and instead focuses in on one of his key economic positions. During the election campaign Trump proclaimed that he would vastly increase expenditure on domestic infrastructure, often talking about spending $1 trillion over a 10-year period. These sorts of sums would make even the most ardent Keynesian economist pause for thought.
Jacob uses this policy as an opportunity to apply some key AD/AS analysis and walks through how to effectively construct the appropriate diagrams. He also focuses upon the key evaluative point of the potential supply-side impact of such expenditure. This is perfect for Year 13 students who are beginning to think about constructing exam-style answers and would benefit from a refresher on AD/AS analysis.