The article explores how government spending impacts the economy in the US, Euro area, and UK. When spending increases during supportive monetary policy, it boosts output significantly. However, packages in 2009-2010 may not have had big effects on output, but could lead to temporary inflation. Combining spending increases with deficit reductions can lead to short-term output gains, depending on how monetary policy and expectations react. The differences in output multipliers across countries are influenced by trade openness and labor market conditions.