The U.S. expansionary demand shock of the 1960s was caused primarily by:
A) the increased optimism of consumers and businesses.
B) a rise in net exports due to a rapidly changing currency exchange rate.
C) rapidly rising input costs.
D) expansionary monetary and fiscal policies.

Question

Quizplus · Accepted Answer

The U.S. expansionary demand shock of the 1960s was primarily caused by expansionary monetary and fiscal policies, including increased government spending on programs such as the Vietnam War and social programs, alongside tax cuts.

The US Expansionary Demand Shock of the 1960s Was Caused Primarily