In the context of aggregate supply and demand, when the economy is experiencing a recession, an increase in __________ can help shift the aggregate demand curve to the right, potentially increasing both output and the price level.

In the context of aggregate supply and demand, when the economy is experiencing a recession, an increase in government spending can help shift the aggregate demand curve to the right. This means that when the government spends more money on things like infrastructure, education, or healthcare, it puts more money into the economy. As a result, businesses may see increased demand for their products and services, which can lead them to produce more and hire more workers. For example, if the government builds a new highway, construction workers get jobs, and they then spend their earnings on goods and services, boosting overall demand. This increase in spending can lead to higher output and potentially raise the price level as the economy starts to recover.