The primary factor that caused some economists to lose their faith in the Keynesian approach to macroeconomic policy was
A) the high levels of unemployment that occurred during the Great Depression.
B) the presence of both high unemployment and high inflation during the 1970s.
C) theoretical proof that Keynes's ideas were invalid.
D) evidence that Keynes's ideas were useful during economic recessions, but not during economic booms.
B
Economics
You might also like to view...
Banks create money when they
A. add to their reserves in the Federal Reserve Bank. B. accept deposits of cash. C. sell government bonds. D. exchange demand deposits for loans to businesses and individuals.
Economics
In the above figure, at the profit-maximizing rate of production for the perfectly competitive firm, average total cost is
A. $7. B. $70. C. $10. D. $3.
Economics