Macroeconomics 11th Edition by Michael Parkin

Exercise 33

Use the following news clip to work Problem.
The New New Deal
Remember what was actually in the stimulus bill of 2009: slightly more than $600 billion went toward poor and middle-class tax cuts, safety net spending (more unemployment assistance and food stamps), and aid to state governments with budget shortfalls. These are the most directly stimulative parts of the bill, bolstering demand and preventing lay-offs- and stimulate they did. Economists of differing ideological stripes generally agree that the economy would have as many as 3 million fewer jobs now were it not for the stimulus. The remaining sixth of the bill focused on longer-term investments, which included putting $90 billion into green energy.
Explain and draw a graph to illustrate how this fiscal stimulus will influence aggregate expenditure and aggregate demand in both the short run and the long run.