Hi Ahmed,
Supply and demand are very important. It seems like almost all decisions are based off of them, I do not believe there was one chapter that didnt discuss how a particular decision effects the aggregate supply or demand curve. I dont know if you are right about the government increasing their expenditures in the city decreasing the gap between the poor and rich. It seems that if the government is going to pay for contract work, as an example, the contractors themselves would prosper, their employees will most likely be paid the same as they always were. For there to be a decrease in the gap between the rich and the poor the poor would have to get paid more. I conceed that if the government spent more money it could create more jobs, which is a step in the right direction.
