An article in the November 11, 2022 issue of The Wall Street Journal was entitled 'October Inflation Report Shows Consumer Prices rose 7.7% From Year Earlier'. In that article appears the following: "Inflation surged last year as the U.S. economy rebounded from the Covid-19 pandemic. Prices jumped as strong consumer spending - fueled by very low interest rates and government stimulus - collided with jammed supply chains and pandemic related shortages."

a)

Give an example of something that could be considered "government stimulus" and would, all else equal, cause households to increase their desired spending.

Briefly explain why the "government stimulus" you identify would have this effect.

For the purposes of this question define "government stimulus" as something that is under the control of the government and stimulates spending by the private sector at the existing equilibrium.