The U.S. recession of 2020 is/was very severe; in many respects the worst recession since the Great Depression in the 1930s.The economy's rebound over the last 3 quarters is remarkable for its robustness.One factor responsible for this improvement was the U.S. government's massive stimulus packages of tax cuts and spending increases in 2020-2021.The programs provided funds for peopleto spend who otherwise would have been less able to do so due to unemployment and other factors that reduced their incomes.The resulting increase in demand led to firms expanding output, employment, and GDP.

Bearing this in mind, please speculate, hypothesize, brain storm, etc. (not research) on two matters:

1.How were firmsable to producemore output (GDP) whenemployment remains 5.5 million persons less than at the onset of the recession? Usually increasing output requires more not fewer workers.

2.The stimulus packages had positive effects on economic growth, income, employment, etc.But these programs also entail some negative effects (costs).Indicate some negative effects that you believe accompanied the stimulus programs.