In the United States before 1970,
A)most macroeconomic instability was caused by simultaneous shifts of aggregate demand and aggregate supply
B)most macroeconomic instability was caused by shifts of aggregate supply
C)most macroeconomic instability was caused by shifts of aggregate demand
D)the government assumed no direct responsibility for the level of employment
E)the government itself was a much less important player in the macroeconomy than it is today

Question

Quizplus · Accepted Answer

Before 1970, most macroeconomic instability in the United States was caused by shifts of aggregate demand. The government's role in the macroeconomy was also less significant than it is today. The idea of using fiscal and monetary policy to stabilize the economy was not fully accepted, and the government did not assume direct responsibility for the level of employment.

In the United States Before 1970