The Drop in Unemployment from Over 11 Percent in 1939

question 21

Multiple Choice

The drop in unemployment from over 11 percent in 1939 to roughly 1 percent in 1944

• A) has been attributed by Keynesians as a validation of larger deficits as a solution to unemployment
• B) has been attributed by Monetarists as a validation that a large increase in the money supply would cure the depression.
• C) has been acknowledged as a success in Keynesian policies, with the caveat that inflation was only averted through price controls.
• D) All of the above are correct.

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