The primary factor that caused some economists to lose their faith in the Keynesian approach to macroeconomic policy was
A. theoretical proof that Keynes's ideas were invalid.
B. the high levels of unemployment that occurred during the Great Depression.
C. the presence of both high unemployment and high inflation during the 1970s.
D. evidence that Keynes's ideas were useful during economic recessions, but not during economic booms.
Answer: C
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If a nation devotes a larger share of its current production to consumption goods, then
A) it must produce at a point within its PPF. B) its economic growth will slow down. C) some productive factors will become unemployed. D) its PPF will shift inward. E) its PPF will shift outward.
Time lags occur when which of the following questions is asked?
A) Where is the economy now? B) Where is the economy going? C) How long will it take for a correct policy to be implemented? D) All of the above. E) None of the above.
Currency is by far the largest element of the M1 monetary aggregate, the narrowest definition of the money supply. The remainder is made up of coins and community currencies
Indicate whether the statement is true or false
Under monopolistic competition, a firm's ability to influence the price of the product it sells arises because:
A. each seller sells a standardized product. B. the product of each seller is differentiated from that of others. C. sellers in the market have large market shares. D. sellers in the market have small market shares.