During the recession of 2008 - 2009:
A)the federal government undertook various policies intended to stimulate private spending and investment.
B)the federal government undertook various policies that ultimately resulted in an inflationary expenditure gap.
C)the federal government was able to achieve a balanced budget even though it undertook various policies to stimulate the economy.
D)the federal government took no action to stimulate the economy, and instead left it to the private sector to try to eliminate the recessionary gap.

Question

Quizplus · Accepted Answer

During the recession of 2008 - 2009, the federal government undertook various policies intended to stimulate private spending and investment. For example, it passed the American Recovery and Reinvestment Act of 2009, which included measures such as tax cuts, increased infrastructure spending, and unemployment benefits. These policies were aimed at increasing demand and encouraging private investment to help pull the economy out of the recession.

During the Recession of 2008 - 2009