Which of the following describes what happened when the Roosevelt recession occurred?FDR increased federal spending which led to a drop in industrial production.Four million more people were added to the unemployment rolls and industrial production dropped by 40%.Four million people found jobs and industrial production increased by 40%.FDR started programs that his critics believed limited business.
Question
Which of the following describes what happened when the Roosevelt recession occurred?FDR increased federal spending which led to a drop in industrial production.Four million more people were added to the unemployment rolls and industrial production dropped by 40%.Four million people found jobs and industrial production increased by 40%.FDR started programs that his critics believed limited business.
Solution
The Roosevelt Recession, which occurred in 1937-38, was a sharp economic downturn during the Great Depression in the United States. The correct description of what happened during the Roosevelt Recession is: "Four million more people were added to the unemployment rolls and industrial production dropped by 40%."
Here's a step-by-step explanation:
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The Roosevelt Recession occurred during President Franklin D. Roosevelt's second term. It was a period of economic decline, which is characterized by a decrease in GDP, or a negative real economic growth rate.
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During this time, the economy took a downturn and four million more people were added to the unemployment rolls. This means that four million more people were without jobs and were actively seeking employment.
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Additionally, industrial production dropped by 40%. Industrial production refers to the output of industrial establishments like factories and mines. A 40% drop is significant and indicates a substantial decrease in the production of goods.
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The recession was a result of a combination of factors, including fiscal policies that reduced government spending and increased taxes. This led to a decrease in demand, which in turn led to a decrease in industrial production and an increase in unemployment.
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The other options provided do not accurately describe what happened during the Roosevelt Recession. For example, FDR did not increase federal spending during the recession - in fact, he did the opposite. And while FDR did start programs that his critics believed limited business, this is not a description of the Roosevelt Recession itself.
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