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In 2008- the Australian economy experienced a significant economic downturn, and the government used expansionary fiscal policy to stimulate economy. The government expenditure comprised of

In 2008- the Australian economy experienced a significant economic downturn, and the government used expansionary fiscal policy to stimulate economy. The government expenditure comprised of a mix of spending on infrastructure projects and cash payments paid directly to consumers. Do you think it matters on what the government spends funds to expand the economy during a downturn? Why or why not? Explain using an Aggregate Supply/ Aggregate Demand graph.

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