One of the points made by economist Richard Gill in the video is that over the period from 1950 to 1980,Keynesian stabilization policies
A) had little impact on nominal GDP but did contribute to systematic increases in the price level.
B) increased the likelihood of severe recessions while keeping prices stable.
C) stabilized the fluctuations in real GDP but contributed to inflationary expectations.
D) encouraged people to save rather than to borrow for spending on things such as art, land, and housing.
E) had little impact on the real economy because wages and prices were flexible and markets cleared.

Question

Quizplus · Accepted Answer

Richard Gill argues that Keynesian stabilization policies helped stabilize the fluctuations in real GDP but contributed to inflationary expectations. This is due to the fact that Keynesian policies relied on increasing aggregate demand through government spending, which can lead to higher prices and inflationary pressure.

One of the Points Made by Economist Richard Gill in the Video