Final answer:
Franklin D. Roosevelt's New Deal economic policies reversed the early political response of cutting spending in response to decreased tax revenue. Instead, Roosevelt implemented work programs for the unemployed and established regulations concerning banks and stock traders.
Step-by-step explanation:
Franklin D. Roosevelt's New Deal economic policies reversed the early political response to the Great Depression that involved cutting spending in response to decreased tax revenue. Instead, Roosevelt implemented policies that aimed to stimulate the economy and provide relief to those affected by the Depression. One of the key policies of the New Deal was the establishment of work programs for the unemployed, such as the Works Progress Administration (WPA), which aimed to create jobs and provide income for individuals who were unable to find work.
Roosevelt also established regulations concerning banks and stock traders to prevent another financial crisis. The Securities and Exchange Commission (SEC) was created to regulate the stock market and protect investors, while the Glass-Steagall Act separated commercial and investment banking to prevent risky practices that contributed to the Depression. These measures aimed to restore confidence in the financial system and prevent future economic collapses.