When did confidence in Keynesian economics diminish?
A) in the 1960s, as the unemployment rate fell
B) in the 1970s, as inflation increased and unemployment decreased
C) in the 1960s, as unemployment increased
D) in the 1970s, as inflation occurred simultaneously with unemployment

Question

When did confidence in Keynesian economics diminish?  
A) in the 1960s, as the unemployment rate fell 
B) in the 1970s, as inflation increased and unemployment decreased 
C) in the 1960s, as unemployment increased 
D) in the 1970s, as inflation occurred simultaneously with unemployment

Quizplus · Accepted Answer

Confidence in Keynesian economics diminished in the 1970s when the phenomenon of stagflation occurred, which is characterized by high inflation and high unemployment happening at the same time, challenging the Keynesian view that these two issues could not occur simultaneously.

When Did Confidence in Keynesian Economics Diminish