If the Economy Falls into a Recession, Which of the Following

question 249

Multiple Choice

If the economy falls into a recession, which of the following responses constitutes the use of automatic fiscal policy?

• A) an income tax cut voted on by Congress and quickly signed by the President
• B) an existing system to make government payments to the growing ranks of unemployed workers
• C) a new program to fund local governments' hiring of 100,000 street sweepers within a year
• D) All of the above answers are correct.

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Definitions:

National Industrial Recovery

A component of the U.S. New Deal in the 1930s aimed at stabilizing and reviving the economy by regulating industry, labor standards, and encouraging collective bargaining.

Agrarian Society

A community whose economy is based on producing and maintaining crops and farmland.

Self-employed Farmers

Individuals who operate their own agricultural enterprises, producing crops or raising livestock, without being employed by another entity.

Blacksmiths

Artisans who work with metal, particularly iron, using tools to forge and shape it into products such as tools, weapons, and structures.