Which of the following had the greatest impact in pulling the U.S.economy out of the Great Depression?
A)The economy's natural tendency to contract toward potential output
B)The federal government's aggressive policy of tax cuts
C)The federal government's aggressive policy of monetary stimuli
D)A precipitous drop in aggregate demand
E)Increased spending during World War II

Question

Quizplus · Accepted Answer

Increased spending during World War II, particularly on military equipment and supplies, had a major impact in stimulating the U.S. economy and pulling it out of the Great Depression. The government's spending during the war led to increased demand for goods and services, which in turn created jobs and boosted economic growth. Additionally, the war effort led to the development of new technologies and industries, further contributing to economic expansion.

Which of the Following Had the Greatest Impact in Pulling