What Impact Did New Deal Programs Have on the Average

question 20

Multiple Choice

What impact did New Deal programs have on the average national unemployment rate during the 1930s?

• A) They reduced the average national unemployment rate to 5 percent by 1935.
• B) They created millions of jobs but had little effect on unemployment because layoffs continued throughout the decade.
• C) They reduced the average unemployment rate,but it remained high,at about 17 percent,through the 1930s.
• D) They allowed the federal government to serve as the employer of last resort,thereby reducing average unemployment rates to near zero.

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Definitions:

Base Year

A specific year against which economic growth, prices, or other economic indicators are measured and compared.

Unemployment Benefits

Payments made by the government or a private insurance company to individuals who are unemployed and actively looking for a job.

Bureau of Labor Statistics

A U.S. government agency that collects, processes, analyzes, and disseminates essential statistical data on labor market activity, working conditions, and price changes in the economy.

Demand-Pull Inflation

Inflation caused primarily by an increase in aggregate demand: too many dollars chasing too few goods.