Which of the following statements is CORRECT?
A) Keynesian economics is unrelated to the events of the Great Depression.
B) Classical economics approaches the economy as three separate but interrelated sectors,while Keynesian economics looks at the economy as a whole.
C) Keynesian economics was developed by the Scholastic School at Salamanca in the late medieval period.
D) The classical school of economics was developed during the classical age of Greece.

Question

Quizplus · Accepted Answer

Classical economics, developed during the 18th and 19th centuries, viewed the economy as consisting of three separate but interrelated sectors: households, businesses, and government. Keynesian economics, developed in the early 20th century, emphasized the importance of looking at the economy as a whole, rather than just focusing on individual sectors. Option A is incorrect as Keynesian economics was developed specifically as a response to the Great Depression. Option C is also incorrect as the Scholastic School at Salamanca did not develop Keynesian economics. Option D is incorrect as the classical school of economics was developed during the 18th and 19th centuries, not during the classical age of Greece.

Which of the Following Statements Is CORRECT