During the 1970s,demand-Management Policy

question 40

Multiple Choice

During the 1970s,demand-management policy

• A)continued to be highly successful in curing the economy's economic problems
• B)was found to be highly unsuitable in periods of stagflation such as the decade of the 1970s
• C)was so unsuccessful that economists advised a return to the pre-World War II philosophy of fiscal policy
• D)was unsuccessful because the automatic stabilizers no longer influenced the economy
• E)was unsuitable because it affected aggregate supply more than aggregate demand