Which of the Following Was True of Fiscal Policy During

question 17

Multiple Choice

Which of the following was true of fiscal policy during the Great Depression?

• A) The federal government generally ran a budget surplus and this reduced aggregate demand.
• B) The federal government persistently balanced its budget during the 1930s.
• C) Government spending was reduced as a share of GDP and budget deficits were small.
• D) Government spending increased as a share of GDP but budget deficits were relatively small (generally less than 4 percent of GDP).

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Definitions:

Three Figure Accuracy

Refers to rounding calculations to three significant digits.

Pair of Equations

Two mathematical statements set equal to each other, used to find the value of variables.

Unknown Variable

A symbol in mathematics and algebra that represents a number not yet identified but can be solved for in an equation.

Graph

A visual representation of data designed to show comparative information or patterns.