Final answer:
Prior to the Great Depression, the Democratic Party favored greater business regulation and labor rights, whereas the Republican Party was aligned with free market principles and smaller government. The New Deal, initiated by the Democrats during the Depression, involved extensive economic regulation and social programs that marked a significant increase in government involvement in the economy.
Step-by-step explanation:
Prior to the Great Depression, the Democratic Party supported greater regulation of business and more rights for labor, while the Republican Party was ideologically committed to free markets and smaller government. During the crisis of the Great Depression, the Democrats, under the leadership of President Franklin D. Roosevelt, introduced the New Deal which ushered in substantial economic regulations and social welfare programs. These programs aimed to protect consumers, expand the economy, improve the condition of workers, and ease the financial strain on retirees, which led to an expansion of the federal bureaucracy and a new role for the government in economic and social matters.