The laissez-faire approach popular before the Great Depression influenced the U.S.government to see business downturns as
A)natural phases in an otherwise healthy system,and therefore to take short-term deficit spending measures to help recovery
B)natural phases in an otherwise healthy system,and therefore to wait for recovery to occur naturally
C)serious maladies in an otherwise healthy system,and therefore to work to redesign the system to avoid such failure in the future
D)failures of the type of system Adam Smith envisaged,and therefore to work to move toward a modern,more managed economy
E)failures of the system to achieve the form that Adam Smith envisaged,and therefore to work to decrease government interference at the micro level

Question

Quizplus · Accepted Answer

The laissez-faire approach believed that the economy would naturally correct itself and that government intervention would only make things worse. Therefore, the U.S. government under this influence would have waited for recovery to occur naturally.

The Laissez-Faire Approach Popular Before the Great Depression Influenced the U.S.government