Macro Thought Experiment II

Here's another macro thought experiment.

A government economist notices that 25% of the job losses in the economy are from the construction sector. To help speed the recovery in the job market and reduce unemployment:

1. the government decides to build 1,000,000 government houses and sell them cheaply to qualified (low-income buyers)

2. the government decides to build 1,000,000 government houses and then tear them down.

3.  the government decides to pay the out of work construction workers their ...