The Laissez-Faire Approach That Was Popular Before the Great Depression

question 88

Multiple Choice

The laissez-faire approach that was popular before the Great Depression influenced the U.S. government to see business downturns as _____

• A) natural phases in an otherwise healthy system and to therefore take short-term deficit spending measures to help recovery.
• B) natural phases in an otherwise healthy system and to therefore wait for recovery to occur naturally.
• C) serious maladies in an otherwise healthy system and to therefore work to redesign the system to avoid such failures in the future.
• D) failures of the type of system that Adam Smith envisaged and to therefore work to move toward an open economy with free trade.
• E) failures of the system to achieve the form that Adam Smith envisaged and to therefore work to decrease government interference at the micro level.

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Definitions:

Trademark

A symbol, word, or phrase legally registered or established by use as representing a company or product.

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A form of protection provided by the laws of a country to the creators of original works, including literary, dramatic, musical works, and artistic works.

Subject Matter Jurisdiction

The authority of a court to hear cases of a particular type or cases relating to a specific subject matter.

Authority

The power or right to give orders, make decisions, and enforce obedience.