The Agricultural Adjustment Act of 1933 was based on the belief that farm incomes would improve if
A)Parity prices were eliminated.
B)Acreage set-asides were eliminated.
C)Parity prices were restored.

Question

Quizplus · Accepted Answer

The Agricultural Adjustment Act of 1933 aimed to increase farm incomes by raising prices for agricultural goods. This was done by restoring parity prices, meaning that prices would be set at a level that would give farmers the same purchasing power that they had during a specific base period. By restoring parity prices, farmers would receive more money for their crops and be more financially stable. Eliminating parity prices (choice A) would not have improved farm incomes, and eliminating acreage set-asides (choice B) would have actually increased supply and lowered prices, further hurting farmers' incomes.

The Agricultural Adjustment Act of 1933 Was Based on the Belief