Before the Great Depression,macroeconomic theory was dominated by the ________ approach that presumed the essential ________ of the private economy.
A)Keynesian,stability
B)Keynesian,instability
C)old classical,stability
D)old classical,instability

Question

Quizplus · Accepted Answer

Before the Great Depression, macroeconomic theory was dominated by the old classical approach that presumed the essential stability of the private economy, also known as the laissez-faire approach. This approach believed that the market would self-regulate and achieve full employment without government interference. The Great Depression led to the rise of Keynesian economics, which emphasized the importance of government intervention to stabilize the economy.

Before the Great Depression,macroeconomic Theory Was Dominated by the ________