A government announces a multi-billion dollar capital expenditure programme to build a nationwide network of high-speed optical fibre broadband infrastructure.
Draw an aggregate demand and aggregate supply (AD/AS) diagram to show the likely short-run and long-run impacts of this increase in government investment on the country's price level and real output.
12 exam-style questions on Edexcel A A Level Economics 2.2.4 Government expenditure (G). Each one has a worked solution and a mark scheme showing where the marks go.