In a recession, which fiscal policy action is most effective for increasing aggregate demand?

In a recession, the most effective fiscal policy action to increase aggregate demand is government spending. When the government spends money on projects like building roads or schools, it creates jobs and puts money into people's hands. This extra income allows people to buy more goods and services, which helps businesses grow and hire more workers. For example, if the government invests in a new highway, construction workers get paid, and they can spend their earnings on food, clothes, and entertainment. This cycle of spending helps boost the economy and can lead to recovery from the recession.