In the 1960s,government policy makers believed that they could:
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 changes in the money supply to virtually eliminate business cycles.
E)use taxation and government spending to fine-tune the economy.

Question

Quizplus · Accepted Answer

In the 1960s, policymakers believed in Keynesian economics, which advocated using fiscal policy, including taxation and government spending, to manage economic fluctuations and fine-tune the economy.

In the 1960s,government Policy Makers Believed That They Could