Question

The Great Depression was a period of high unemployment, poverty, and deflation. When the United States entered World War II, the government increased spending, resulting in inflation and decreased unemployment. Which of these characterizes the period of increased government spending?
a. Contraction
b. Expansion
c. Peak
d. Trough

Answer 1

The answer is: Expansion

During the expansion, the focus of the government is to improve or add various type of government infrastructure and welfare (such as additional spending for healthcare or providing loans to open new business) . Period of expansion usually being done in order to help the people got into harsh economic depression.