Confidence in Keynesian economics:
A)diminished in the 1960s as the unemployment rate fell.
B)flourished in the 1960s despite two major recessions.
C)diminished in the 1960s as unemployment increased.
D)diminished in the 1970s as inflation occurred simultaneously with two recessions.
E)flourished through the 1980s despite Reagan's supply-side policies.

Question

Quizplus · Accepted Answer

Confidence in Keynesian economics decreased in the 1970s as inflation occurred simultaneously with two recessions, which was seen as a challenge to the theory's ability to stabilize the economy.

Confidence in Keynesian Economics