Confidence in Keynesian economics:

A) diminished in the 1960s as the unemployment rate fell.
B) flourished in the 1960s despite two major recessions.
C) diminished in the 1960s as unemployment increased.
D) diminished in the 1970s as inflation occurred simultaneously with two recessions.
E) flourished through the 1980s despite Reagan's supply-side policies.

Keynesian Economics

An economic theory suggesting that active government intervention in the marketplace and monetary policy is the best method of ensuring economic growth and stability.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment, serving as a key indicator of labor market health.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power over time.