The view that the government should take an active role in the macroeconomy dates to:
A) the Civil War.
B) World War I.
C) the Great Depression.
D) the Vietnam War.

Question

Quizplus · Accepted Answer

The view that the government should take an active role in the macroeconomy dates back to the Great Depression, when massive levels of unemployment and economic hardship led to widespread interest in government intervention to stabilize the economy. During this time, economists such as John Maynard Keynes proposed that the government could help support aggregate demand by increasing spending and creating jobs, which laid the groundwork for many of the macroeconomic policies that governments around the world use today. While government intervention in the economy has a longer history than just the Great Depression, the scale and scope of government involvement in macroeconomic policy during this period helped establish the general principle that government has a role to play in managing the overall health of the economy.

The View That the Government Should Take an Active Role