What event was a major influence on the development of macroeconomics?
A) Great Depression
B) Employment Act of 1946
C) establishment of the Federal Reserve System in the United States
D) U.S. entry into World War II

Question

Quizplus · Accepted Answer

The Great Depression had a significant impact on the development of macroeconomics as it highlighted the importance of understanding the behavior of the economy as a whole, rather than focusing solely on individual markets or industries. It led to the creation of new economic theories and models, such as Keynesian economics, which emphasized the role of government intervention in stabilizing the economy. The experience of the Great Depression also motivated policymakers to create institutions like the Federal Reserve and the Employment Act of 1946 to help manage the economy and promote full employment.

What Event Was a Major Influence on the Development of Macroeconomics