New classical economists like Robert Lucas argue that the Great Depression was primarily caused by

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New classical economists like Robert Lucas believe that mistaken expectations about future economic conditions, particularly about inflation rates, were the primary cause of the Great Depression. They argue that investors and consumers had unrealistically high expectations for future economic growth and returns, which led to excessive investment, borrowing, and spending. When these expectations were not met, investment and spending fell, exacerbating the economic downturn.

New Classical Economists Like Robert Lucas Argue That the Great