In macroeconomics we focus on the United States economy as a whole rather than the smaller pieces that make it up. We also analyze the overall cause and effect of certain situations in order to further understand how these items affect the economy on a short-term and long-term basis. It is important to understand these things as a member of such a large society as it helps create a better idea of our specific roles at this time. When trying to select a topic that would best directly reflect the economy as whole and the impact that any decision could have on the overall well being of its people, what better topic of discussion than the 2009 economic stimulus plan. The 2009 economic stimulus plan being implemented under the Obama administration is titled the American Recovery and Reinvestment Act of 2009 abbreviated as ARRA. This package was signed by President Obama on February 17, 2009. The current focus of the stimulus plan is economic expansion. The plan focuses on the current state of the economy while trying not to damage future funds and spending. A few key things of importance in the stimulus plan are health care, creation of new jobs, and new resources for energy. This 787 billion dollar plan strives to pull the economy out of its current recession in hopes of healing the global community. The American Recovery and Reinvestment Act of 2009 is the biggest stimulus plan put into place since the Roosevelt Administration. The importance of this plan is its overall impact in the United States. If the plan follows through in accordance with the incentives proposed, the economy should feel a breakthrough from the recession. On the contrary, if implemented too quickly, it may cause a reverse effect and draw the economy into a greater recession. It is important to discuss the stimulus plan as it directly affects the citizens of this country. We wanted a topic that would educate us as well as provide information supportive of macroeconomics and the broader topic. The American Recovery and Reinvestment Act of 2009 is an important topic of discussion as it evaluates and analyzes the current economic crisis and the things the government needs and wants to do in order to satisfy the needs of its current members. In the economic stimulus plan of 2008 and the extended version American Recovery and Reinvestment Act of 2009 & 2010, are solutions to reinvest in the economy from different tax use aspects. The Government uses fiscal policy tools as a solution to the economic recession, just as in the Great depression. This time around tax cuts returned in the form of stimulus checks are being used to increase consumption and investment in U.S. goods. Due to the fact that our economy is at an exceptionally large deficit, a plan that would help decrease taxes in the current 2010 year would be ideal. Structural explanations for the solutions that the Government applies are Keynesian Economics. One of the theories associated with Keynesian economics is the expansionary fiscal policy which explains what happens when government spending increases. The following formula further explains this theory; (G á ðADá [C+I +Gá+NX] (TâðADá [Cá+ Iá+G+NX]) taxes reduced increase aggregate demand. The 2008 stimulus plan was much less complex than the ARRA. Comparing total cost and distributions, the 2008 bill only cost 150 billion dollars. The 2008 stimulus plan didn’t have a huge effect on the economy as it only increased consumption by 3>