Which of the following was true of the United States before 1970?
A) The government was not responsible for promoting employment, output, and price stability.
B) Most of the macroeconomic instability was caused by changes in international oil prices.
C) Most of the macroeconomic instability was caused by shifts in the aggregate demand curve.
D) Most of the macroeconomic instability was caused by the depreciation of the dollar.
E) The government was responsible for using monetary policy to correct depressions.

Question

Quizplus · Accepted Answer

Before 1970, macroeconomic instability in the United States was primarily due to shifts in the aggregate demand curve, influenced by factors such as fiscal policy, consumer confidence, and investment levels.

Which of the Following Was True of the United States