Government actions that were taken in order to stimulate the economy during the Great Recession of 2007-09 included the following, except
A) a signiﬁcant reduction of interest rates to nearly zero.
B) a large increase in transfer payments.
C) an increase in the deﬁcit spending of the government.
D) a sharp increase in the natural rate of unemployment.

Question

Quizplus · Accepted Answer

The government actions taken during the Great Recession of 2007-09 did not include a sharp increase in the natural rate of unemployment. In fact, the government was working to decrease unemployment by implementing policies such as the American Recovery and Reinvestment Act, which provided funding for infrastructure projects and job training programs. The other options, A, B and C, are all accurate actions that were taken to stimulate the economy during this period.

Government Actions That Were Taken in Order to Stimulate the Economy