The In the News article in the text titled "Fiscal Policy in the Great Depression" discusses fiscal spending and taxation.During the Great Depression,the federal government pursued a policy of fiscal restraint that led to

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The policy of fiscal restraint led to a decrease in aggregate demand, thus exacerbating the Great Depression. The structural deficit decreasing from $4.5 billion to a $2 billion surplus meant that the government was spending less and taking in more revenue, which further reduced the amount of money in the economy and increased unemployment.

The in the News Article in the Text Titled "Fiscal