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The Great Depression and New Deal Unit Test When Roosevelt cut government spending in 1937, what clear indications did he receive that his New Deal policies were effective? Select the correct answer. (1 point) unemployment rates increased the number of bank openings decreased industrial production decreased the number of breadlines increased workers' wages flomeased

Ask by Luna Montgomery. in the United States
Feb 03,2025

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Workers' wages increased, showing the New Deal policies were effective.

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The correct answer is: **Workers' wages increased** This increase in wages served as a clear indication that Roosevelt's New Deal policies were having a positive effect on the economy and the well-being of workers.

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During the Great Depression, Roosevelt's New Deal programs significantly lowered unemployment rates as millions were put back to work through various public works projects. By 1937, unemployment had dropped from a staggering 25% in 1933 to around 14%, showcasing a clear regression desired by the New Deal policies aimed at economic recovery. However, Roosevelt's decision to cut government spending in 1937 ironically led to an uptick in unemployment. This backlash revealed the dependencies of those policies on sustained government investment, leading to a subsequent reevaluation of fiscal strategies to encourage growth and stability. The cyclical nature of economic recovery can be as unpredictable as a roller coaster ride!

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