_____1. Prices adjusted quickly to changes in supply and demand. Consequently, the real wages would quickly adjust such that the supply of labor equals the demand for labor. Hence because any unemployment would be quickly eliminated by the adjusting real wage rate, there was no basis for for government fiscal policy.
_____2. Monetary policy affected the price level and not real output.
Consequently, other than Marxian theories there was no basis for government intervention into the marketplace.