Reports from inside the Whitehouse have suggested that the Trump administration is set to announce huge increases in spending on Artificial Intelligence (AI) and Quantum Computing for their 2021 budget proposal.
The research and development funding for AI would increase from $973 million to nearly $2 billion, with spending on quantum computing to increase to around $860 million. The funding would be aimed at greatly enhancing American expertise in the field, training highly specialised workers, and providing resources to develop the most advanced technologies in the world.
These two cutting edge technologies are likely to play an important role in future industries, from commerce to defence, and the US does not want to be playing catch up to other emerging leaders in the field such as China.
Q1. As referred to in the article, what is meant by the term budget proposal?
Q2. Explain the impact that the increased spending on AI and Quantum Computing is likely to have on economic growth?
Q3. With the use of a diagram, draw the effect that this spending would have on the long-run equilibrium level of real output and prices in the US economy.
Click here for the source article
Nigeria's economy grew 4.6% year-on-year in Q4 2024, marking its fastest expansion in a decade.…
President Trump has called his new trade pact with the UK a “maxed out deal.”…
The UK government has launched a consultation to extend the soft drinks industry levy (SDIL)—commonly…
China’s economy started 2025 with stronger-than-expected momentum, growing by 5.4% in Q1—comfortably above forecasts of…
It’s a dramatic move—but one the U.K. government believes is essential for national economic security.…
A new chapter in the U.S.-China trade war is unfolding—and it’s one that economists fear…