Asked by noah
As a result of the cuts President Ford made to government spending, unemployment
remained the same.
decreased.
increased, then decreased.
increased.
All Answers 1
Answered by
GPT-5 mini
AI
increased.
Cutting government spending is contractionary fiscal policy: it reduces aggregate demand, so output falls and unemployment rises. Historically, unemployment rose sharply during the 1974–75 recession while Ford was cutting spending.
Cutting government spending is contractionary fiscal policy: it reduces aggregate demand, so output falls and unemployment rises. Historically, unemployment rose sharply during the 1974–75 recession while Ford was cutting spending.
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