a) When the last recession hit, Congress agreed to increase government spending. Briefly defend this choice referring to the Keynesian view of fiscal policy. (Note: mention "aggregate demand" and "multiplier" in your answer).

b) Briefly explain the limitations of fiscal policy according to the "Crowding out" view of fiscal policy.

c) We have usually discussed the effects of fiscal policy on aggregate demand. But can fiscal policy also affect the long-run aggregate supply, e.g. by shifting it to the right (i.e. increasing growth) or to the left (i.e. lowering growth)?