In the 1960s, what did government policy makers believe that they could do?
A) stabilize the economy by letting the market system solve all problems
B) reduce unemployment by running federal budget surpluses
C) eliminate government's role in stabilization policy
D) use taxation and government spending to fine-tune the economy

Question

In the 1960s, what did government policy makers believe that they could do?  
A) stabilize the economy by letting the market system solve all problems 
B) reduce unemployment by running federal budget surpluses 
C) eliminate government's role in stabilization policy 
D) use taxation and government spending to fine-tune the economy

Quizplus · Accepted Answer

In the 1960s, government policy makers believed in using taxation and government spending to fine-tune the economy. This is known as discretionary fiscal policy and was believed to be an effective way to stabilize the economy and avoid recessions.

In the 1960s, What Did Government Policy Makers Believe That