At the beginning of the Great Depression
A) neoclassical economists insisted that the government should increase spending.
B) neoclassical economists predicted that the economy would soon return to normal.
C) neoclassical economists agreed that the problem was lack of effective demand.
D) neoclassical economists predicted the fall of capitalism.

Question

Quizplus · Accepted Answer

Neoclassical economists at the beginning of the Great Depression believed that the economy would soon return to normal and that government intervention was unnecessary. They believed that any downturns in the economy would be self-correcting and that unemployment would eventually decrease on its own. It was not until later in the Great Depression that neoclassical economists began to advocate for government intervention to boost demand and stimulate the economy.

At the Beginning of the Great Depression