Answer:
With enough careful planning, fiscal and monetary policy can prevent recessions. = False
There is a normal economic cycle, which includes recession and boom accordingly, therefore, no policy can prevent such phase of an economic cycle, as the cycle is bound to happen and all the changes are inevitable.
Had the U.S. government used fiscal and monetary policy more effectively, many economists believe that the Great Depression would not have been as severe. = True
Although, there is standard economic cycle which includes recession, but with the correct formation and implementation of policies the tendency of such phases can be controlled up-to an extent, thereby, the policies if applied more effectively then, the economy had not face such huge depression.
At the time of the Great Depression, fiscal and monetary policy were not well understood. = True
As said in above point the policy if was properly implemented the tendency of depression would have been low, and accordingly it concludes that the policy was not properly understood, and thus, not implemented properly at the time of great depression.
Booms and busts are natural responses to ever‐changing economic conditions. = True
There is a standard economic cycle, which includes all the phases, including boom and recession, as normal results of economic change.
