The Primary Factor That Caused Most Economists to Lose Their

question 22

Multiple Choice

The primary factor that caused most economists to lose their faith in the classical 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)the theoretical proof that classical ideas were invalid.
• D)the evidence that classical ideas were useful during economic booms, but not during economic recessions.

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Definitions:

Schizophrenia

A long-term mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception, inappropriate actions and feelings, withdrawal from reality and personal relationships into fantasy and delusion, and a sense of mental fragmentation.

Parental Guidance

Advice or instruction provided by parents to their children, often used to describe the suitability of media content for children with supervision.

Psychosexual Development

Freud's theory describing how personality develops through stages associated with sexual pleasure focusing on different body parts.

Anal

Refers to anything related to the anus.