Following a period of economic stagnation, a government announces a massive £50 billion capital investment program dedicated to modernising the national energy grid and transport infrastructure.
Draw an aggregate demand (AD) and short-run aggregate supply (SRAS) diagram to illustrate the likely short-run impact of this increase in government expenditure on the equilibrium price level and real output of the economy.
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.