CEVAP:

In the period before the Great Depression, economists were using microeconomic models (sometimes called as classic models) while reviewing large-scale economic issues. “Macroeconomics” was even not a term used until the period after World War II. For example, according to classical supply and demand analysis, it is considered that if there is an unemployment problem in the economy, excessive supply of labor decreases wages and generates a new equilibrium point and therefore there will be no unemployment period for a long time. But, during 10 years of Great Depression, unemployment levels were extremely high and the inadequacy of classical models to explain that much lasting unemployment period led to the development of macroeconomics. One of the most important studies of economic history is General Theory of Employment, Interest and Money written by John Maynard Keynes in 1936. Keynes has developed an economic theory for explaining complex economic events by using the information about markets and behaviors in these markets. Therefore, the origins of macroeconomics are widely based on Keynes’ book and theoretical breakthrough attributed to him is often called as the “Keynesian Revolution”.