Question

Read Eye on Fiscal Stimulus. How big was the fiscal stimulus package of​ 2008-2009, how many jobs was it expected to​ create, and how large was the multiplier implied by that​ expectation? Did the stimulus​ work?

Answer 1

1. $787 billion

2. 650,000; 1.6

3. did not​ meet; the multiplier was much smaller than 1.6

Step-by-step explanation:

The fiscal stimulus package of 2008-2009 was​ $787 billion. This is because, the United States government wanted to increase spending in order to have sufficient economic growth. Thus, the fiscal stimulus was expected to create​ 650,000 JOBS, in which the multiplier implied by that expectation is​ 1.6.

However, the stimulus​ did fiscal stimulus did not work, as it DID NOT MEET the expectations of the Obama administration, simply because​ "the multiplier was much smaller than 1.6"