By using restrictive fiscal policy during the Great Depression,the government improved the economic situation.
From 1931 to 1933,the structural deficit decreased from $4.5 billion to a $2 billion surplus.This fiscal restraint reduced aggregate demand and deepened the Great Depression.

Question

Quizplus · Accepted Answer

Restrictive fiscal policy during the Great Depression worsened the economic situation rather than improving it. The decrease in structural deficit and surplus was due to lower government spending and higher taxes, which reduced consumer and business spending, leading to a further decline in aggregate demand and the prolonging of the depression.

By Using Restrictive Fiscal Policy During the Great Depression,the Government