Because inflation was not a serious problem during the Great Depression,Keynes's analysis assumed
A)that unemployment also was not a problem.
B)that the money supply was fixed.
C)that the price level was fixed.
D)that monetary policy is not effective.

Question

Quizplus · Accepted Answer

Keynes assumed that the price level was fixed, which means that inflation was not a concern during the Great Depression. This allowed him to focus on the problem of unemployment and develop his theory of how government intervention could help stimulate demand and increase employment.

Because Inflation Was Not a Serious Problem During the Great