In contrast to the post-World War II period, before 1940 the government
A)actively intervened in the economy for stabilization purposes.
B)used aggregate demand management to avoid recessions.
C)rarely intervened in the economy to influence inflation or unemployment rates.
D)used government ownership to guarantee full employment.

Question

Quizplus · Accepted Answer

Before 1940, the government rarely intervened in the economy to influence inflation or unemployment rates. It was believed that the economy would self-correct, and the government's role was limited to providing a stable framework for business to operate. It wasn't until the Great Depression that the government started to actively intervene in the economy.

In Contrast to the Post-World War II Period, Before 1940