Question

In contrast to the post-World War II period, before 1940 the government rarely intervened in the economy to influence inflation or unemployment rates. used government ownership to guarantee full employment. used aggregate demand management to avoid recessions. actively intervened in the economy for stabilization purposes.

Answer 1

Answer: the government rarely intervened in the economy to influence inflation or unemployment rates.

Explanation:

Up until the Great Depression of 1929 to 1932, the government followed a laissez-faire policy where they rarely intervened in the market to influence inflation or unemployment rate.

After the Great Depression and then the second world war, this changed and the Federal government became very active in the economy through fiscal policy and massive government spending enabled the U.S. to surge ahead of other nations in terms of development.