Economic Policy: Influential Theories

Question 1

Use the drop-down menus to complete the sentences.

Revolt · Accepted Answer

According to the information presented about Country Y, the classical economic concept of can be seen.: the invisible hand; The economic events of Country Y demonstrate the idea of laissez faire because the government intervene in economic events.: did not

Question 2

Use the drop-down menus to complete each sentence.

Revolt · Accepted Answer

Keynes was an avid believer in intervention to help solve economic issues.: government; Keynes believed that aggregate demand could help solve economic problems during a recession.: increasing; Keynes recommended that the government taxes during economic contraction.: lower; During the Great Depression, Keynes promoted actions to encourage economic recovery.: expansionary

Question 3

Use the drop-down menus to complete each sentence.

Revolt · Accepted Answer

Hayek is best known for his contribution to the understanding of .: price changes; Hayek disagreed with Keynes about expansionary policy because it could cause and influence consumer decisions.: inflation; Hayek disagreed with Keynes about expansionary policy because it could cause and influence consumer decisions.: negatively; Unlike Keynes, Hayek believed that consumer actions be accurately displayed on a supply and demand curve.: could not

Question 4

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

Revolt · Accepted Answer

Monetary policy is the best way to influence economic growth.

Economic Policy: Influential Theories Answers

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