The main reason why the traditional classical school ceased to be widely accepted was that:
A)it did not reflect the realities of the modern economy.
B)when Keynes received the Nobel Prize, the academic establishment started believing his ideas.
C)it could not explain the persistence of the high levels of unemployment seen during the Great Depression.
D)it was too abstract to be completely understood.
E)it could not explain the relationship between inflation and unemployment.

Question

Quizplus · Accepted Answer

The classical school of economics was unable to explain the persistence of high unemployment levels during the Great Depression, which undermined its credibility and contributed to its decline in popularity. Keynesian economics emerged as a more influential alternative theory that could explain and address such issues.

The Main Reason Why the Traditional Classical School Ceased to Be