Question

The Great Depression was a period of high unemployment, poverty, and deflation. When the United States entered World War II, the government increased spending, resulting in inflation and decreased unemployment. Which of these characterizes the period of increased government spending?
a. Contractionb. Expansionc. Peakd. Trough

Answer 1

Answer: (B)

The period of increased government spending was characterised by an "expansion" of the economy of the United States.

Explanation:

The Economic expansion that occured in the United States after World War II was also called the "golden age of capitalism". It was a period of high growth and low unemployment.

The United States government made important efforts to sustain the economy during and after the war, through increased spending. As a result, the country was able to position itself as an economic powerhouse.