The fiscal expansion during the Kennedy administration was successful because the economy was already operating above full employment.

Question

Quizplus · Accepted Answer

The fiscal expansion during the Kennedy administration was successful in part because it raised the level of aggregate demand and helped the economy recover from a recession. The expansionary policies included tax cuts and increases in government spending, which aimed to stimulate economic activity and reduce unemployment. The economy was not operating above full employment before these policies were implemented.

The Fiscal Expansion During the Kennedy Administration Was Successful Because