Which of the following had the most effect in pulling the Canadian economy out of the Great Depression?
A) the economy's natural tendency to contract toward potential output
B) the federal government's aggressive policy of tax cuts
C) the federal government's aggressive policy of monetary stimulus
D) the increased spending brought on by World War II

Question

Which of the following had the most effect in pulling the Canadian economy out of the Great Depression?  
A) the economy's natural tendency to contract toward potential output 
B) the federal government's aggressive policy of tax cuts 
C) the federal government's aggressive policy of monetary stimulus 
D) the increased spending brought on by World War II

Quizplus · Accepted Answer

The increased spending brought on by World War II had the most effect in pulling the Canadian economy out of the Great Depression. This led to increased production, employment, and income, which helped stimulate growth and recovery. While the other options may have had some impact, they were not as significant as the massive spending and economic mobilization that occurred during the war.

Which of the Following Had the Most Effect in Pulling