Before the Great Depression, the conventional wisdom among economists and policy makers was that the economy is largely self-regulating. 

a. Is this view consistent or inconsistent with Keynesian economics? Explain.

b. What effect did the Great Depression have on conventional wisdom?

c. Contrast the response of policy makers during the 2007–2009 recession to the actions of policy makers during the Great Depression. What would have been the likely outcome of the 2007–2009 recession if policy makers had responded in the same fashion as policy makers during the Great Depression?