In the short run, and especially when unemployment is high, crowding in is the stronger force.The short-run effects of government's financial rescue program and fiscal stimulus package helped the economy increase aggregate demand curing the Great Recession.

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Crowding in is a stronger force in the short run, especially when unemployment is high. The government's financial rescue program and fiscal stimulus package helped increase aggregate demand and stimulate the economy during the Great Recession, which is an example of crowding in.

In the Short Run, and Especially When Unemployment Is High