When did policy makers in the U.S. first use fiscal policy with the intent of manipulating
Aggregate demand to move the economy to its potential level of real GDP?
A) During the Roosevelt administration
B) During the Truman administration
C) During the Eisenhower administration
D) During the Kennedy administration

Question

Quizplus · Accepted Answer

The Kennedy administration marked the first use of fiscal policy with the intent of manipulating aggregate demand to move the economy to its potential level of real GDP. This was known as the New Economic Policy and involved a combination of tax cuts and increased government spending to stimulate aggregate demand and help end the recession of the early 1960s.

When Did Policy Makers in the U