The existence of stagflation in the 1970s undermined the credibility of (aggregate)demand-management policies.

Name: The existence of stagflation in the 1970s undermined the credibility of (aggregate)demand-management policies.
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Stagflation, which is the combination of stagnant economic growth and high inflation, challenged the effectiveness of demand-side policies such as fiscal and monetary policies, leading to a loss of confidence in these policies among economists and policymakers.

The Existence of Stagflation in the 1970s Undermined the Credibility