How was the American Recovery and Reinvestment Act of 2009 expected to impact aggregate supply or aggregate demand?

Multiple choice question.

Increase aggregate demand

Decrease aggregate demand

Increase aggregate supply

Decrease aggregate supply

1 answer

The American Recovery and Reinvestment Act of 2009 was primarily designed to boost economic activity during the recession by providing fiscal stimulus through government spending and tax cuts. This type of stimulus is intended to increase overall demand for goods and services in the economy.

Therefore, the correct answer is:

Increase aggregate demand