Government actions that were taken in order to stimulate the economy during the Great Recession of 2007-09 included the following, except:
A) A significant reduction of interest rates to nearly zero
B) A large increase in transfer payments
C) An increase in the deficit-spending of the government
D) A sharp increase in the natural rate of unemployment

Question

Quizplus · Accepted Answer

A sharp increase in the natural rate of unemployment was not a government action taken to stimulate the economy during the Great Recession. The other three options - reduction of interest rates, increase in transfer payments, and increase in deficit-spending - were all policies implemented to boost economic activity during the recession.

Government Actions That Were Taken in Order to Stimulate the Economy