Which of the Following Had the Most Effect in Pulling

question 10

Multiple Choice

Which of the following had the most effect in pulling the Canadian economy out of the Great Depression?  

• A) the economy's natural tendency to contract toward potential output 
• B) the federal government's aggressive policy of tax cuts 
• C) the federal government's aggressive policy of monetary stimulus 
• D) the increased spending brought on by World War II

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Definitions:

Public Good

A product or service offered for free to all society members, by either the government or a private entity, without the intent of making a profit.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are available for everyone to use and one person's use does not reduce availability to others.

Private Goods

Goods that are both rivalrous and excludable, meaning consumption by one person reduces availability for others and access can be restricted.

Tragedy of the Commons

A situation in which individual users, acting independently according to their own self-interest, deplete or spoil shared resources, even though it is contrary to the group's long-term interests.