Arrange the following steps in the correct order for how fiscal policy changes affect aggregate demand through the spending multiplier: A) Government increases spending, B) Consumers receive income from government projects, C) Overall demand in the economy rises, D) Increased consumption leads to further economic activity.

To understand how fiscal policy changes affect aggregate demand, we start with the government increasing its spending, which is step A. This spending creates jobs and projects, leading to step B, where consumers receive income from these government initiatives. With more income, consumers tend to spend more, which is step D, resulting in increased consumption and further economic activity. As a result of these actions, overall demand in the economy rises, which is step C. For example, if the government builds a new school, workers are paid, they spend their earnings on local businesses, and this boosts the entire economy.