Which of the Following Events Challenged Keynesian Views, and Led

question 9

Multiple Choice

Which of the following events challenged Keynesian views, and led to the popularity of Milton Friedman's ideas?

• A)The hippie community started advocating socialist values.
• B)Hard-core republicans came into office.
• C)The U.S.economy faced high levels of inflation and unemployment simultaneously.
• D)The oil crisis exploded.
• E)Countries that followed Friedman's ideas performed better.

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Definitions:

Direct Materials

Raw materials that can be directly traced to the manufacturing process of a product and are a significant component of its production cost.

Unfavorable

A term often used in budgeting and financial analysis to describe results that are worse than expected or budgeted figures.

Cost Variance

The difference between actual cost and the flexible budget at actual volumes.

Actual Cost

The incurred expenditure on materials, labor, and overhead necessary to produce a product or perform a service, reflecting the genuine expense.