Question: The $787 billion stimulus package passed in 2009 was designed to jumpstart the economy reeling from the worst economic recession since the Great Depression by

The $787 billion stimulus package passed in 2009 was designed to jumpstart the economy reeling from the worst economic recession since the Great Depression by injecting the economy with large amounts of government spending (“Much Ado About Multipliers,” The Economist, September 24, 2009). Explain how this spending, as designed, was meant to create a much greater economic effect than the $787 billion spent. What factors might explain why the full economic effect of the stimulus may have fallen short of expectations?

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