Economic Policy: Influential Theories

Question 1

The graph shows how individuals affect economic growth.

Revolt · Accepted Answer

They work in their own self-interest.

Question 2

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

Revolt · Accepted Answer

John Maynard Keynes

Question 3

Why did Friedrich Hayek call expansionary spending dangerous?

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He felt it could lead to inflation and poor decisions by consumers.

Question 4

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

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Individuals seeking their own self interest benefit the economy as a whole.

Question 5

What are the goals when a government uses expansionary monetary policy? Check all that apply.increasing its money supply to boost the economydecreasing its money supply to slow the economyincreasing its money supply to speed business expansiondecreasing its money supply to curb business expansiondecreasing its interest rates to increase investment spending

Question 6

free enterprisegovernment regulationKeynesian economicsmonetary policy

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free enterprise

Question 7

The General Theory of Employment, Interest and Money was written by

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John Maynard Keynes.

Question 8

Friedrich Hayek believed that

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the economy is too complicated to apply aggregates.

Question 9

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

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increase demand.

Question 10

producersconsumersgovernmentprices

Revolt · Accepted Answer

prices

Economic Policy: Influential Theories Answers

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