I am talking about common economic theory. Anyway, that is specifically what refuttes Obama's policies of higher taxes and more welfare. Obama's policies of high government spending is a poor choice when the economy is doing well, but not if there is a recession.
When you got your degree in finance, are you saying that you learned that short term government spending does not move the aggregate demand curve to the right? Since a recession is when the aggregate demand or aggregate supply curve shifts to the left, government spending will directly counter a recession.
Ive taken eco 101 so far but I doubt the courses would contridict, I can still trust the class that government spending increases aggregate demand.
Did you learn something that says that defecit government spending doesn't help you leave a recession? If the actual GDP is below potential, then government spending can correct the inballance.