How did the Great Depression affect economists' beliefs about the macroeconomy?
What will be an ideal response?
Ans: Instead of assuming that the macroeconomy would automatically recover from a recession, economists began to consider the possibility that modern market economies could fall into prolonged contractions and that government assistance would be necessary to pull them out.
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A person quits her job in order to spend time looking for a better-paying job. This type of unemployment is an example of
A) frictional unemployment. B) cyclical unemployment. C) seasonal unemployment. D) structural unemployment.
Liquidity is the same as
A) easy conversion of money to an asset, allowing for loss of value. B) diversification of an investor's store of value. C) easy conversion of an asset to a means of payment, allowing for loss of value. D) easy conversion of an asset to a means of payment, with little or no loss of value.