Which agency promoted economic recovery by regulating production, prices, and wages?

• A. National Recovery Administration
• B. Securities and Exchange Commission
• C. Works Progress Administration
• D. Tennessee Valley Authority

Answer: (A)

The main idea here is how New Deal programs tried to jump-start the economy by getting businesses to cooperate through rules that set standards for production, prices, and wages. The National Recovery Administration was created to do just that. It aimed to boost economic activity by approving codes of fair practice across industries, setting minimum wages, maximum hours, and encouraging fair pricing and competition. The goal was to raise purchasing power and reduce destructive price-cutting and layoffs, helping industries recover together.

The Securities and Exchange Commission focuses on regulating the stock market and protecting investors, not on production or wages. The Works Progress Administration was a public-works program aimed at creating jobs through infrastructure projects, not regulating industry practices. The Tennessee Valley Authority built and managed power and flood-control projects in the Tennessee Valley, again not setting broad wage or price rules. So the agency that best fits regulating production, prices, and wages to promote recovery is the National Recovery Administration.