The primary factor that caused most economists to lose their faith in the classical approach to macroeconomic policy was
A. the evidence that classical ideas were useful during economic booms, but not during economic recessions.
B. the theoretical proof that classical ideas were invalid.
C. the presence of both high unemployment and high inflation during the 1970s.
D. the high levels of unemployment that occurred during the Great Depression.
Answer: D
You might also like to view...
Price discrimination by sellers usually results in
A) coercing people into buying goods they don't want to purchase. B) coercing people into paying higher prices than they want to pay. C) less total but more net revenue for the seller. D) new and additional opportunities for some buyers.
The efficient level of paper production will occur where the
A) marginal private benefit from consuming paper is equal to the marginal social cost of production. B) marginal social benefit from consuming paper is equal to the marginal social cost of production. C) production of paper no longer produces negative externalities. D) economically efficient level of the output of paper is equal to the economically efficient level of inputs.