7
QuizMultiple Choice

Economic Policy: Influential Theories — Quiz

Question 7 • Economics

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

Answer
A
John Maynard Keynes
B
Adam Smith
C
Milton Friedman
D
Friedrich von Hayek

Explanation

John Maynard Keynes argued that governments should intervene during economic downturns to support demand and reduce unemployment. The U.S. government’s actions during the 2008 crisis, such as stimulus spending and financial rescues, fit that approach. Friedman, Hayek, and Smith are generally associated with stronger limits on government intervention in markets.

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