While most economists believe that Keynes was correct when he placed primary focus on aggregate demand manipulation to solve the recessionary gap of the Great Depression,supply-siders are critical of this focus,claiming that

A) Keynesian economics can only be successful if interest rates are allowed to rise.
B) Keynesian economics diverted attention away from important factors such as work effort,labor productivity,and incentives to save and invest.
C) the Great Depression was caused by the stock market crash of 1929,not a decline in aggregate demand.
D) greater control of the way in which stocks and bonds were traded would have brought the economy out of the Great Depression.
E) the supply of goods and services should have been placed under the control of the government until the economy had time to adjust to the decline of aggregate demand.

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Rakesh Vinod · Accepted Answer

Final Answer : B, Explanation :  Supply-siders argue that Keynesian economics focused too much on demand-side policies and neglected important factors such as work effort, labor productivity, and incentives to save and invest. They believe that policies such as tax cuts and deregulation can boost the supply side of the economy and lead to long-term economic growth.

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