Infrastructure Spending

Definition

Infrastructure spending refers to the government's investment in the construction and maintenance of public facilities such as roads, bridges, schools, and hospitals. It is aimed at improving the overall quality of a country's physical infrastructure.

Related terms

Public Goods: These are goods or services that are provided by the government for everyone's benefit, such as parks or national defense.

Capital Stock: Refers to the total amount of physical assets (machinery, buildings) available for production within an economy.

Multiplier Effect: Describes how an initial increase in spending can lead to larger increases in economic output through subsequent rounds of spending.