Question

Another infrastructure project in northern California funded in part by ARRA funds involved expanding the Caldecott Tunnel between the cities of Oakland and Orinda. A spokesperson for the California state agency in charge of the project mentioned that the Caldecott tunnel project would have a "ripple effect" on employment. The ripple effect meant that

Answer 1

The ripple effect means that the economic benefits generated by the construction of the project and the hiring of construction workers will expand to other industries and areas of the local and regional economy (it also affects positively the national economy but in a very small way). For example, construction workers use their salaries to purchase goods and those goods are provided by other industries.