A Laissez-Faire Doctrine Was in Vogue Before the Great Depression

question 113

Multiple Choice

A laissez-faire doctrine was in vogue before the Great Depression of the 1930s.How did this perspective influence the Canadian government's view of business downturns?  

• A) The Canadian government viewed business downturns as natural phases in an otherwise healthy system, and therefore it took short-term deficit spending measures to help recovery. 
• B) The Canadian government viewed business downturns as natural phases in an otherwise healthy system, and therefore it waited for recovery to occur naturally. 
• C) The Canadian government viewed business downturns as serious maladies in an otherwise healthy system, and therefore it worked to redesign the system to avoid such failure in the future. 
• D) The Canadian government viewed business downturns as failures of the type of system Adam Smith envisaged, and therefore it worked to move toward a modern, more managed economy.

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Definitions:

Partially Separated Circuits

Electrical circuits that share some, but not all, connections or components, allowing for partially independent operation.

Circulatory System

The body's system responsible for transporting blood, nutrients, gases, and waste products, and includes the heart and blood vessels.

Amphibian

A class of cold-blooded vertebrates that live both in water (as larvae or tadpoles) and on land (as adults), including frogs, toads, and salamanders.

Oxygen-rich

Describes an environment or substance containing high levels of oxygen, often associated with well-oxygenated blood and atmospheres conducive to aerobic life forms.