The Keynesian model provided an explanation for
A) the prolonged unemployment of the 1930s.
B) the double-digit inflation rates of the 1970s.
C) the high unemployment rates of the 1970s.
D) the high inflation rates of the 1930s.

Question

Quizplus · Accepted Answer

The Keynesian model explained the prolonged unemployment of the 1930s by arguing that in times of economic downturn, government intervention in the form of fiscal policy (such as increased government spending) was necessary to stimulate demand and create employment.

The Keynesian Model Provided an Explanation for