During the Great Depression, economists first began studying the relationship between:
A)changes in GDP and changes in interest rates.
B)changes in aggregate expenditure and changes in GDP.
C)changes in nominal GDP and changes in real GDP.
D)changes in share prices and changes in price controls.

Question

Quizplus · Accepted Answer

During the Great Depression, economists began studying the relationship between changes in aggregate expenditure (i.e. total spending in the economy) and changes in GDP. This led to the development of Keynesian economics, which focused on the role of government intervention in boosting aggregate demand to stimulate economic growth.

During the Great Depression, Economists First Began Studying the Relationship