Question

Why will spending money on building highways and repairing bridges stimulate the economy? (Select all that apply.)

A. When the government builds highways and repairs bridges, it creates jobs.
B. Large government construction projects will create a shortage of construction workers in other sectors.
C. New construction projects require raw materials, such as concrete and lumber
D. Large government construction projects will encourage other construction projects in the private sector

Answer 1

Investing in building highways and repairing bridges can stimulate the economy by creating jobs, increasing demand for raw materials, and encouraging private sector construction.

Step-by-step explanation:

Investing in building highways and repairing bridges can stimulate the economy for several reasons:

1. Creating Jobs: When the government undertakes these construction projects, it creates job opportunities for workers involved in the planning, design, and construction phases. This boosts employment and puts money into the hands of workers, who then spend it on goods and services, further stimulating the economy.
2. Increase in Demand for Raw Materials: Building highways and repairing bridges require materials such as concrete and lumber. The demand for these raw materials increases, benefiting industries involved in their production. This, in turn, has a positive ripple effect on the economy.
3. Encouraging Private Sector Construction: Large government construction projects can also encourage private sector construction. When people see the government investing in infrastructure, it instills confidence in the economy and encourages private companies to undertake their own construction projects. This leads to further economic growth and job creation.

Overall, investing in building highways and repairing bridges has multiple positive impacts on the economy, including job creation, increased demand for raw materials, and the stimulation of private sector construction.