Impact of Fiscal Policy on Aggregate Demand

In the context of economic growth and development, government policies play a crucial role in shaping a country's economic trajectory. One common approach used by governments to stimulate growth is through fiscal policy, which involves changes in government spending and taxation. A government decides to increase its infrastructure spending significantly to enhance economic activity.

Given this scenario, which of the following is the most likely effect of this fiscal policy change on the economy in the short run?