Final answer:
The stimulus packages during the Great Recession aimed at economic stabilization, rather than significantly raising consumption, which actually decreased by 7.8%. The $830 billion expansionary policy included tax cuts and spending increases, but its effects were somewhat offset by state and local government budget cuts.
Step-by-step explanation:
False. The fiscal stimulus package passed in 2008 under the Bush Administration did result in some measures to try and stabilize the economy, but it did not result in a significant rise in consumption during the Great Recession. Consumption expenditures actually decreased by 7.8% according to the Bureau of Labor Statistics (BLS). The recovery measures implemented, such as tax rebates and "Cash for Clunkers," were essential in lessening the impacts of the recession, but the primary objective was stabilization rather than a large boost in consumer spending.
During the Great Recession, the bipartisan efforts led by the Obama administration resulted in an $830 billion expansionary fiscal policy, which had both tax cuts and increases in government spending aimed to stimulate the economy. However, it's important to note that simultaneous budget cuts at the state and local levels partially offset the federal stimulus. The Great Recession, having started in late 2007 and continuing into 2009, saw the unemployment rate double from 5% to 10%, and the U.S. economy experienced a 3.1% cumulative loss of GDP, indicating that the crisis was severe and widespread.