Economic Policy: Influential Theories Flashcard
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Why did Friedrich Hayek call expansionary spending dangerous?
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Why did Friedrich Hayek call expansionary spending dangerous?
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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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How did Adam Smith's economic ideas help the United States establish a free enterprise system? Check all that apply.
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They led to freedom of choice for consumers and producers. They led to open competition for consumers. They led to individual ownership of property.
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Friedrich Hayek believed that
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the economy is too complicated to apply aggregates.
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A government might enact expansionary spending when it is trying to
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increase aggregate demand for goods.
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Which economists most likely would have agreed with the US government's intervention during an economic crisis in 2008?
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John Maynard Keynes and Milton Friedman
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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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John Maynard Keynes believed that governments should increase spending in order to
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increase demand.
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Classical economics played an important role in helping the United States establish ______________
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free enterprise
