Among the problems that surfaced in the 1970s application of the New Economics was the result that:

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The New Economics, which was based on Keynesian principles, aimed to manage economic activity through government intervention, particularly by manipulating aggregate demand to achieve full employment without inflation. However, in practice, the 1970s saw the emergence of stagflation, a condition where high inflation and high unemployment occurred simultaneously, challenging the effectiveness of these policies. This period demonstrated that price inflation could become a significant issue even before full employment was reached, undermining the expectations of the New Economics.

Among the Problems That Surfaced in the 1970s Application of the New