Read a passage from a speech given by President Barack Obama.Because of this plan, families who are struggling to pay tuition costs will receive a $2,500 tax credit . . . And Americans who have lost their jobs in this recession will be able to receive extended unemployment benefits.–President Barack Obama, February 4, 2009
Answer
A
It describes government measures to stimulate demand and bring about a recovery.
B
It describes government measures to increase production and bring about a depression.
C
It describes a shift in government policies during a trough on the business cycle.
D
It describes a shift in government policies during a peak on the business cycle.
Explanation
The passage describes tax credits for families and extended unemployment benefits. These measures put more money in people’s hands, helping them pay expenses and continue spending, which can stimulate demand and support economic recovery. The passage does not describe measures to increase production or a specific shift at a business-cycle peak or trough.
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