The Primary Factor That Caused Some Economists to Lose Their

question 66

Multiple Choice

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

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Definitions:

National Debt

The overall monetary liabilities that a country's government has incurred by borrowing from diverse sources.

Budget Deficit

The financial situation where a government's expenditures exceed its revenues within a specific period.

National Debt

National debt is the total amount of money that a country's government has borrowed, typically as a result of budget deficits, through the issuance of securities like government bonds.

Annually Balanced Budget

A budgeting approach where the government's projected revenues and expenditures are equal within a one-year period.