The 2009 fiscal stimulus package did not work ________.
A)in that the IS curve did not shift to the right
B)because most of the intended increase in government spending took too long to kick in
C)because the increase in government spending was not enough to offset the decline in autonomous expenditure
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

The 2009 fiscal stimulus package is often critiqued for several reasons: the IS curve did not shift to the right as expected, indicating that the stimulus did not increase aggregate demand as intended; much of the government spending took too long to implement, delaying its economic impact; and the scale of the stimulus was insufficient to counteract the decline in autonomous expenditure, such as investment and consumer spending, that occurred during the recession.

The 2009 Fiscal Stimulus Package Did Not Work ________