The following excerpt is from a 1945 government report on the economic impact of World War I.


The Committee's optimism (about the health of the U.S. economy] did not keep it from noticing
serious maladjustments... such as overexpansion of speculation and
the unsatisfactory situation
of farmers... [I]ts tendency, however, was to underrate the danger of these maladjustments and
to overrate the stability of the economic system.
- "Postwar Economic Perspectives," W. S. Woytinsky, Principal Consulting Economist, Bureau
of Employment Security


How did New Deal legislation address the economic consequences of the “maladjustments”
discussed in the excerpt?

A. by creating subsidies

B. by funding old age pensions

C. by enforcing immigration quotas

D. by outlawing labor union reforms

New Deal legislation addresses the economic consequences of the “maladjustments” by creating subsidies. The correct option is A.

Relief meant that the president sought to instantly assist those who were in need by establishing welfare, bread lines, and jobs. Fixing the economy and putting an end to the Depression were the goals of recovery.

Short-term improvements in people's lives were made possible by New Deal programs for those affected by the depression's events. The federal government eventually came to play a significant role in the country's economic and social affairs as a result of New Deal policies.

After the Great Depression, the U.S. economy was revived with the aid of the New Deal in 1945. While some economists doubt the New Deal's influence on an otherwise sluggish recovery, they frequently attribute it to lessening the depression's duration and intensity.

Thus, the ideal selection is option A.

Learn more about the New Deal here:

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A. The Homeland Security Office
ОО
B. The Internal Revenue Service
C. The Customs and Border Patrol
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