What economic phenomenon did the new classical theories aim to clarify?

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The prolonged unemployment experienced during the Great DepressionThe acceleration in real output growth witnessed in the 1950sThe occurrence of stagflation during the 1970sWhy permanent policy adjustments influence individual behavior more than temporary ones

Explanation

New classical theories were developed to address the issue of stagflation in the 1970s, a period characterized by simultaneous inflation and stagnant economic growth, which traditional models struggled to explain.