Which of the following is true of the Golden Age of fiscal policy of the 1960s?
A)Fiscal policy was used to prevent output from expanding in 1964.
B)Lyndon B.Johnson cut income tax rates to reduce inflationary pressures in the economy
C)A tax cut was introduced to increase savings and unemployment.
D)A tax cut increased disposable income and consumption.
E)The unemployment rate rose by 5 percent for the first time in seven years

Question

Quizplus · Accepted Answer

The Golden Age of fiscal policy of the 1960s saw a tax cut introduced that increased disposable income and consumption, which led to economic growth. Option A is incorrect as expansion was desired, not prevented. Option B is false as Johnson did not cut income tax rates to reduce inflation. Option C is also incorrect, as a tax cut would increase spending, not savings and unemployment. Option E is false as the unemployment rate did not rise by 5 percent during this period.

Which of the Following Is True of the Golden Age