Economic Policy: Influential Theories

Question 1

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

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the invisible hand

Question 2

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

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did not

Question 3

Keynes recommended that the government taxes during economic contraction.

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lower

Question 4

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

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expansionary

Question 5

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

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government

Question 6

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

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price changes

Question 7

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

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Monetary policy is the best way to influence economic growth.

Question 8

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

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increasing

Question 9

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

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inflation

Question 10

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

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negatively

Economic Policy: Influential Theories Answers