Which program aimed to support farmers by reducing agricultural surplus under the New Deal?
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Correct answer: Agricultural Adjustment Act (AAA)
The AAA paid farmers to reduce production, raising crop prices. This intervention aligned with Keynesian ideas of stabilizing markets.
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More Keynesian Economics and New Deal questions
- What role did deficit spending play in New Deal policies?
- How did Keynesian theory view government budgets during economic downturns?
- Which New Deal act established unemployment insurance and pensions?
- What was the primary aim of the Civilian Conservation Corps (CCC)?
- Which criticism was often made against Keynesian New Deal policies?
- What was the relationship between Keynesian economics and the New Deal?