In early 2009, President Obama signed legislation to enact a massive federal government-spending program. The stimulus spending program was aimed at limiting the downturn in the economy caused by the collapse in the housing market and by the financial crisis.

a) Using a diagram like Figure 13.6, illustrate the effect of the increase in government spending.

b) In your diagram, does the total expenditures line shift up or down after the stimulus money is spent?

c) Does the total expenditures line in your diagram rotate (become steeper or flatter) after the stimulus spending occurs? Why or why not?