the data now clearly indicate that a recession exists, the government passed a law to give everyone money, and now the money is actually being distributed. the only problem is that it takes time for people to figure out what to spend the money on. how does the economy look at this point, with the economy in a recession, an expansionary fiscal policy passed as law, some money spent to implement the law, but the distributed money not actually yet spent? here, ad refers to the original aggregate demand curve and ad' refers to the new aggregate demand curve after the economy changes.
