5.4 Economic Policy: Influential Theories Answers

According to the information presented about Country Y, the classical economic concept of can be seen.

The economic events of Country Y demonstrate the idea of laissez faire because the government intervene in economic events.

Keynes recommended that the government taxes during economic contraction.

During the Great Depression, Keynes promoted actions to encourage economic recovery.

Use the drop-down menus to complete the sentences.

did✔ did not

Use the drop-down menus to complete each sentence.

Keynes was an avid believer in intervention to help solve economic issues.

Hayek is best known for his contribution to the understanding of .

Milton Friedman helped to establish the economic theory of monetarism.Which statement best describes the idea of monetarism?

Milton Friedman helped to establish the economic theory of monetarism.Which statement best describes the idea of monetarism?

Use the drop-down menus to complete each sentence.

Keynes believed that aggregate demand could help solve economic problems during a recession.

Hayek disagreed with Keynes about expansionary policy because it could cause and influence consumer decisions.

X decreasing✔ increasing

✔ inflationunemploymentdecreased growth

Hayek disagreed with Keynes about expansionary policy because it could cause and influence consumer decisions.

X positively✔ negatively

increase✔ lowerstop collecting

Unlike Keynes, Hayek believed that consumer actions be accurately displayed on a supply and demand curve.