Practice Test Answers

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Which best describes a difference between the views of Milton Friedman and John Maynard Keynes on the economy?

Keynes believed the economy was too complicated to think of aggregates, while Friedman said higher aggregate demand could solve issues.

Friedman said that monetary policy should be used to influence aggregate demand, while Keynes believed the best approach was fiscal policy.

Keynes believed in little government intervention in the economy, while Friedman said government should play an active role.

Friedman said that fiscal policy should be used to influence aggregate demand, while Keynes believed the best approach was monetary policy.

Which would be the best label for the circle in the center?

Government Economic Policies

Ineffective Economic Policies

The Free Enterprise System

The Best Economic Policies

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