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Unit 3: Economics Government Policy Portfolio

Part 1: Interpret the following graph on unemployment: Use the following graph to answer the questions that follow.
| Bureau of Labor Statistics , “Graph of U.S. Unemployment Rate, 1930-1945,” SHEC: Resources for Teachers, accessed December 8, 2022,
1. What was the unemployment rate for the year the First New Deal legislation was passed (1933)?
2. What was the unemployment rate for the year before the legislation was passed?
3. What was the unemployment rate for the year after the legislation was passed?
4. What impact did the legislation have on the unemployment rate?

Part 2: The First New Deal Legislation 1933-1934
Read the following document and answer the questions.
5. What parts of the New Deal does the United States still have today?
6. Why was this legislation passed?
7. What were some actions enacted in this policy?
8. What was the intended goal of this economic policy?
9. Define Fiscal Policy and Monetary Policy.
10. Is this policy a Fiscal or Monetary Policy? What actions from this policy support your conclusion?

1 answer

Part 1: Graph Interpretation on Unemployment

  1. What was the unemployment rate for the year the First New Deal legislation was passed (1933)?
    To answer this question, you would need to refer to the specific graph showing U.S. unemployment rates from 1930-1945. Typically, the unemployment rate in 1933 was around 25% as the Great Depression was at its peak.

  2. What was the unemployment rate for the year before the legislation was passed?
    The year before the legislation was passed was 1932. Based on historical data, the unemployment rate in 1932 was approximately 24.1%, indicating a slight decrease from 1933.

  3. What was the unemployment rate for the year after the legislation was passed?
    The year following the passing of the First New Deal legislation was 1934. Historical data suggests that the unemployment rate dropped to about 21.7% in 1934, showing a continued trend of declining unemployment.

  4. What impact did the legislation have on the unemployment rate?
    The First New Deal legislation appeared to have a positive impact as it contributed to a decline in the unemployment rate from 1933 (around 25%) to 1934 (approximately 21.7%). This suggests that the initiatives taken under the New Deal were effective in reducing unemployment.

Part 2: The First New Deal Legislation 1933-1934

  1. What parts of the New Deal does the United States still have today?
    Some components that originated from the New Deal and still exist today include Social Security, Securities and Exchange Commission (SEC), Federal Deposit Insurance Corporation (FDIC), and various labor protections.

  2. Why was this legislation passed?
    The First New Deal legislation was passed in response to the economic crisis during the Great Depression, aiming to provide relief to the unemployed, recover the economy, and reform the financial system.

  3. What were some actions enacted in this policy?
    Some actions included the establishment of the Civilian Conservation Corps (CCC), Public Works Administration (PWA), Agricultural Adjustment Administration (AAA), and the National Industrial Recovery Act (NIRA).

  4. What was the intended goal of this economic policy?
    The intended goal of the First New Deal was to provide immediate relief to those suffering from the effects of the Great Depression, promote economic recovery, and prevent future depressions through systemic reform.

  5. Define Fiscal Policy and Monetary Policy.

    • Fiscal Policy: Fiscal policy refers to the use of government spending and taxation to influence the economy. It involves budgeting decisions made by the government to achieve economic objectives like controlling inflation, stimulating growth, or reducing unemployment.
    • Monetary Policy: Monetary policy involves the management of the money supply and interest rates by a central bank (such as the Federal Reserve) to control inflation, manage employment levels, and stabilize the currency.

  6. Is this policy a Fiscal or Monetary Policy? What actions from this policy support your conclusion?
    The First New Deal is primarily considered a Fiscal Policy because it involved significant government spending aimed at creating jobs and stimulating economic activity. Actions that support this conclusion include the establishment of public works programs and direct financial aid to citizens, reflecting government intervention through budgeting and spending.