If Unemployment Is the Most Significant Problem in an Economy

question 60

Multiple Choice

If unemployment is the most significant problem in an economy, which of the following actions would be an appropriate fiscal policy response?

• A)A decrease in taxes
• B)A decrease in transfer payments
• C)A decrease in the federal budget deficit
• D)An increase in the federal budget surplus
• E)A decrease in government purchases

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Definitions:

Collectivized Farms

Agricultural operations where the land and resources are owned and managed collectively by a group of farmers or the government, as seen in socialist and communist societies.

Five-Year Plan

Economic programs implemented by Soviet Union to industrialize rapidly and increase production, usually focusing on heavy industry and agriculture.

Soviet Agriculture

Soviet agriculture refers to the farming practices and policies in the Soviet Union, characterized by collective farming, state ownership of land, and efforts to increase food production under communist ideologies.

Nuremberg Laws

A set of antisemitic laws in Nazi Germany introduced in 1935, which severely restricted the rights of Jewish people.