According to Economic Analyst Richard Gill,the Reason the Government Policy

question 58

Multiple Choice

According to economic analyst Richard Gill,the reason the government policy makers were so ineffective in combating stagflation in the 1970s was that they

• A) focused solely on supply-side forces and ignored significant changes in aggregate demand.
• B) relied too heavily on changes in taxes rather than changes in the money supply.
• C) shifted back and forth between fighting inflation and fighting unemployment, using demand-oriented policies.
• D) did not have accurate data on the actual rate of inflation and unemployment.
• E) relied too heavily on the ability of our economy to regulate itself without government intervention.

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Definitions:

Business Organizations

Various forms of entities set up to conduct commercial enterprise, including corporations, partnerships, and sole proprietorships.

Public Corporation

A company whose shares are traded freely on a stock exchange, with many shareholders and subject to public reporting regulations.

Ethics

The branch of philosophy that deals with moral principles, governing a person's behavior or conducting an activity.

Common Stock

Equity ownership in a corporation, with voting rights and potential dividends.