490 12-8 10.2The Historical Development of Modern Macroeconomics The Great Depression of the 1930s led to the development of macroeconomics and aggregate demand tools -monetary and fiscal policy -to deal with recessions. Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 12-8 10.2The Historical Development of Modern Macroeconomics • The Great Depression of the 1930s led to the development of macroeconomics and aggregate demand tools - monetary and fiscal policy - to deal with recessions