The In the News article in the text titled "Fiscal Policy in the Great Depression" discusses fiscal spending and taxation.During the Great Depression,the federal government pursued a policy of fiscal restraint that led to
A)An increase in the structural deficit.
B)A decrease in the structural deficit.
C)An increase in aggregate demand.
D)An increase in taxes.

Question

Quizplus · Accepted Answer

The article states that the federal government pursued a policy of fiscal restraint during the Great Depression, which means they decreased their fiscal spending and increased taxation. This led to a decrease in the structural deficit, as the government was reducing their overall spending. However, it also contributed to a decrease in aggregate demand, which is why many economists today argue for increased fiscal spending during times of economic recession.

The in the News Article in the Text Titled "Fiscal