Why did President George W. Bush feel the need for a stimulus package for the U.S. economy after September 11, 2001? As a conservative, what type of fiscal stimulus would be most appealing to President Bush?

The decline in real GDP and the existence of rising unemployment indicated that a recessionary gap was developing in the U.S. economy. To combat this macroeconomic condition, some kind of fiscal policy to stimulate aggregate demand was needed. To shift the expenditures schedule upward and shift the aggregate demand curve outward was what was called for. As a conservative and a Republican, it was consistent for President Bush to advocate a tax cut that would stimulate consumption spending. This increase in spending would come from the private sector, reflecting the belief of conservatives that the private sector should expand and the public sector should get smaller.