What was used to influence the macroeconomy prior to the 1930s?
A) fiscal policy
B) monetary policy
C) socialist policies
D) automatic stabilizers
E) laissez-faire policies

Question

Quizplus · Accepted Answer

Prior to the 1930s, laissez-faire policies were used to influence the macroeconomy. This approach advocated for minimal government intervention in the economy, with the belief that markets would self-correct and achieve equilibrium. Government intervention was generally limited to occasional monetary interventions by central banks to manage the money supply. There was little to no use of fiscal policies or automatic stabilizers. Socialism was not a prominent economic philosophy during this time period.

What Was Used to Influence the Macroeconomy Prior to the 1930s