Question

question 16 of 25

which statement best describes the influence the new deal had on the u.s. economy?

a. as a result of new deal policies, both unemployment and production decreased.
b. as a result of new deal policies, unemployment decreased and production increased.
c. as a result of new deal policies, unemployment increased, and production decreased.
d. as a result of new deal policies, both unemployment and production increased.

Explanation:

Analyze the economic goals of the New Deal

The New Deal was a series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States between 1933 and 1939. Its primary economic goals were relief for the unemployed, recovery of the economy to normal levels, and reform of the financial system to prevent a repeat depression.

Evaluate the impact on unemployment and industrial production

Through programs like the Civilian Conservation Corps (CCC), Works Progress Administration (WPA), and Public Works Administration (PWA), millions of Americans were put back to work, which directly decreased the unemployment rate from its peak in 1933. Simultaneously, measures to stabilize industry and agriculture, along with increased government spending, stimulated industrial and agricultural production, causing overall economic output to increase.

Match with the correct multiple-choice option

• Option A suggests both decreased, which is incorrect because production increased.
• Option B states that unemployment decreased and production increased, which accurately reflects the historical economic trends during the New Deal era.
• Option C suggests unemployment increased and production decreased, which is the opposite of what occurred.
• Option D suggests both increased, which is incorrect because unemployment decreased.

Answer:

• (A) As a result of New Deal policies, both unemployment and production decreased.
• (B) As a result of New Deal policies, unemployment decreased and production increased. (Correct answer)
• (C) As a result of New Deal policies, unemployment increased and production decreased.
• (D) As a result of New Deal policies, both unemployment and production increased.