Government actions that were taken in order to stimulate the economy during the Great Recession of 2007-09 included the following, except
A)a significant reduction of interest rates to nearly zero.
B)a large increase in transfer payments.
C)an increase in the deficit spending of the government.
D)a sharp increase in the natural rate of unemployment.

Question

Quizplus · Accepted Answer

During the Great Recession, the government took actions such as reducing interest rates, increasing transfer payments, and increasing deficit spending to stimulate the economy. However, a sharp increase in the natural rate of unemployment was not a government action; it is a long-term economic condition not directly manipulated by short-term policy measures.

Government Actions That Were Taken in Order to Stimulate the Economy