Economic Policy: Influential Theories Answers – Flashcards
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The General Theory of Employment, Interest and Money was written by....
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....John Maynard Keynes.
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Monetarism plays a role in economic growth by....
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....influencing the supply of money.
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An economic thinker who influenced early economists was....
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....Adam Smith.
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Which best describes the idea behind the "invisible hand"?
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Producers and consumers work together, which guides the economy.
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John Maynard Keynes believed that governments should increase spending in order to....
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....increase demand.
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Milton Friedman argued that consumers are more likely to alter their behavior based on....
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....long-term changes in the economy.
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According to Milton Friedman, ___________ policy is the best way to influence the economy's aggregate demand.
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fiscal
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Classical economics played an important role in helping the United States establish ___________.
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free enterprise
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Which best describes how individuals help the economy grow?
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They work to influence the economy.
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Which occurred during the Great Depression?
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-falling wages -plummeting growth -surging unemployment
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classical economics
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a group of early economic theories that focus on the establishment of economic freedoms
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coordinate
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to work to together to meet a goal
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laissez faire
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the belief that governments should not be involved in economic affairs
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monetarism
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an economic theory that promotes stability through influencing the money supply
