The 2009 U.S. stimulus was a(n) _____ fiscal policy that _____ aggregate demand.
A)expansionary; increased
B)expansionary; decreased
C)contractionary; increased
D)contractionary; decreased

Question

Quizplus · Accepted Answer

The 2009 U.S. stimulus was an expansionary fiscal policy aimed at increasing aggregate demand. The stimulus package involved government spending on infrastructure projects and tax cuts, both of which increase aggregate demand by increasing government expenditures and disposable income for consumers.