The recession of 1937 seemed to be the result of reductions in federal spending by the Roosevelt administration.

Question

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The recession of 1937 is widely attributed to the reduction in federal spending by the Roosevelt administration, which was aimed at balancing the budget and reducing the deficit. The spending cuts led to a significant decrease in demand and economic activity, which in turn led to a sharp decline in output, employment, and prices. The recession lasted for about a year and a half and was only overcome by a renewed expansion of government spending and policies such as the preparation for World War II.

The Recession of 1937 Seemed to Be the Result of Reductions