In the 1970s the U

Multiple Choice

In the 1970s the U.S. economy experienced a novel set of macroeconomic outcomes: rising
Price level and falling output. This experience led policymakers to

A) aggregate demand was more important than aggregate supply in determining the economy's output level.
B) acknowledge that monetary policy and aggregate supply play a role in influencing macroeconomic performance.
C) conclude that fiscal policy alone was enough to stabilize the economy.
D) conclude that being a vital input, oil prices should be controlled by the government.