Keynesian theory became important when classical economic theory did not adequately explain a prolonged period of:
A) Inflation with low unemployment.
B) Inflation with high unemployment.
C) Deflation with low unemployment.
D) Deflation with high unemployment.

Question

Quizplus · Accepted Answer

Keynesian theory became particularly significant during the Great Depression, a period characterized by prolonged deflation and high unemployment, which classical economic theory could not adequately explain or address.

Keynesian Theory Became Important When Classical Economic Theory Did Not