(04.01 MC) 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? (4 points)

A dressing covers an open wound, but it doesn’t touch the wound.

The method of taking the drug has no impact on its effects.

The most commonly used illicit drug is cocaine.

The United States has one of the highest incarceration rates in the world.

(04.05 MC) Economists warn that the nation is slipping into a recession. Which fiscal policies will the federal government most likely take to help the economy grow? (4 points)

(04.04 MC) If the United States falls into a recession, which action would the Federal Reserve take to encourage employment? (4 points)

Mixing medications with wine causes more potential health problems than mixing medications with beer.

(04.01 MC) Following U.S. involvement in the Korean War and the related period of low unemployment and rising prices, the Federal Reserve intervened to curb growth and decrease inflation. At what point in the business cycle did the Federal Reserve take action? (4 points)

(04.02 MC) How are start-up costs related to natural monopolies? (4 points)