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:

Rule

An established guide or principle governing conduct or procedure within a particular area of activity.

Evidence

Information presented in legal proceedings such as documents, witness testimony, or physical objects, used to establish facts and influence the decision of the court.

Preliminary Injunction

A court order issued early in a lawsuit that prohibits the parties from taking a specific action until a final decision is made.

Notice And Comment

A process within administrative law where the public is given the opportunity to participate in the drafting of regulations by submitting observations and feedback.