Answer to Question 1
Answer: An ideal response will:
1. Explain that the Progressive movement drew much of its support from the middle class and sought to reform the political, economic, and social systems.
2. Discuss some of the specific regulatory reforms of the Progressive era, including the Pure Food and Drug Act; the Meat Inspection Act, which marked the beginning of consumer protection; the Federal Reserve Act to regulate banking; and the Federal Trade Commission to strengthen anti-trust policy.
3. Explain how the Great Depression and Franklin Roosevelt's New Deal marked a major turning point in U.S. economic history by transforming the laissez-faire state into an interventionist state, expanding the role of the government through financial reforms, agricultural policy, labor relations, and industrial regulations.
4. Note that both eras set forth policies that legitimized the expanded role of the government in the economy and became permanent public policies.
Answer to Question 2
Answer: An ideal response will:
1. Discuss the trend of both increasing budget deficits and increasing levels of debt, and show how decreased revenue and increased spending drive this trend.
2. Explain the causes for the reduction in revenues, including the financial crisis and recent tax cuts.
3. Explain the causes for increased expenditures, including recent wars and the financial crisis.
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economic question