Classical Macroeconomic Theory Was Discredited and Gave Way to the First

question 157

Multiple Choice

Classical macroeconomic theory was discredited and gave way to the first Keynesian approach as a result of

• A)the collapse of the gold standard at the outset of World War I.
• B)the Great Depression of the 1930s.
• C)the wage-price controls of World War II.
• D)the rapid inflation of the late 1960s.
• E)the switch from fixed to flexible exchange rates in the early 1970s.

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