Which of the Following Best Describes the Impact of Fiscal

question 20

Multiple Choice

Which of the following best describes the impact of fiscal policy during the Great Depression?

• A) Despite the large increases in government spending as a share of GDP when the New Deal policies were initiated, the expansionary fiscal policy failed to stimulate demand.
• B) Fiscal policy was focused on monetary expansion, when it should have focused on maintaining a balanced budget.
• C) It is difficult to link expansionary fiscal policy with economic recovery because government spending and budget deficits were a relatively small portion of GDP prior to the beginning of World War II.
• D) There is a direct correlation between increases in government spending as a share of GDP and increases in output and employment.

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Definitions:

Continuous

Ongoing, without interruption or end; often refers to processes or operations that are carried out incessantly.

Transit Advertising

Advertising placed in or on modes of public transportation or in public transportation areas, targeting consumers while they are on the move.

Mass Transit

Public transportation systems designed to move large numbers of people efficiently across cities or regions, such as buses, trains, and subways.

Flighting Schedule

A media buying strategy in advertising that alternates between periods of advertising activity and periods of no advertising, to optimize reach and frequency against a target audience.