The Obama administration (as the previous Bush administration did) stated that the stimulus package would increase employment and successfully pull the economy out of the recession. However, unemployment remained high for some time even after the second stimulus package was approved. Discuss whether this implies that stimulus packages are completely useless to affect aggregate output.

Macroeconomics
13th Edition
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter16: Expectations Theory And The Economy
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The Obama administration (as the previous Bush administration did) stated that the
stimulus package would increase employment and successfully pull the economy
out of the recession. However, unemployment remained high for some time even
after the second stimulus package was approved.
Discuss whether this implies that stimulus packages are completely useless to
affect aggregate output.
Transcribed Image Text:The Obama administration (as the previous Bush administration did) stated that the stimulus package would increase employment and successfully pull the economy out of the recession. However, unemployment remained high for some time even after the second stimulus package was approved. Discuss whether this implies that stimulus packages are completely useless to affect aggregate output.
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