Economic Policy: Influential Theories Answers

Which economist most likely would have agreed with the US government’s intervention during an economic crisis in 2008?

producersconsumersgovernmentprices

John Maynard Keynes believed that governments should increase spending in order to

The graph shows how individuals affect economic growth.

Which occurred during the Great Depression? Check all that apply.increased aggregate demandnew forms of moneyfalling wagesincreasing pricesplummeting growthsurging unemployment

How did Adam Smith’s economic ideas help the United States establish a free enterprise system? Check all that apply.

Friedrich Hayek believed that

Why did Friedrich Hayek call expansionary spending dangerous?

Milton Friedman argued that consumers are more likely to alter their behavior based on

The graph shows an early economic theory known as the "invisible hand."