The primary factor that caused most economists to lose their faith in the classical approach to macroeconomic policy was
A)the high levels of unemployment that occurred during the Great Depression.
B)the presence of both high unemployment and high inflation during the 1970s.
C)the theoretical proof that classical ideas were invalid.
D)the evidence that classical ideas were useful during economic booms, but not during economic recessions.

Question

Quizplus · Accepted Answer

The Great Depression, characterized by unprecedented levels of unemployment and economic downturn, demonstrated the limitations of classical economics, which could not adequately explain or solve such severe economic crises. This led many economists to question and move away from classical approaches, seeking new theories and methods to address macroeconomic challenges.

The Primary Factor That Caused Most Economists to Lose Their