The occurrence of the Great Depression offered evidence that supported
A) the classical theory of economics
B) the need for the government to practice the policy of laissez faire
C) the need for the government to control prices
D) Congress to take action to stop rising prices
E) the Keynesian idea that the government needed to guide the economy

Question

Quizplus · Accepted Answer

The occurrence of the Great Depression was evidence that supported the Keynesian idea that the government needed to guide the economy. The classical theory of economics, which favored laissez faire policies, failed to prevent the downturn, and the government intervention became necessary to restore economic growth. The government implemented various policies, such as the New Deal, which provided relief, recovery, and reform measures that helped to alleviate the economic crisis.

The Occurrence of the Great Depression Offered Evidence That Supported