Economic Policy: Influential Theories Answers

Which best summarizes the philosophical difference between economists John Maynard Keynes and Adam Smith?

The graph shows Keynes's theory of aggregate demand.

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

Which occurred during the Great Depression? Check all that apply.increased aggregate demandnew forms of moneyfalling wagesincreasing pricesplummeting growthsurging unemployment

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

Milton Friedman led a new economic school of thought called

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

A government might enact expansionary spending when it is trying to

producersconsumersgovernmentprices

Milton Friedman argued that consumers are more likely to alter their behavior based on

Why did Friedrich Hayek call expansionary spending dangerous?

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

Who was known as the "Father of Economics,” whose ideas of free markets inspired classical economic thinkers?

How did Adam Smith’s economic ideas help the United States establish a free enterprise system? Check all that apply.They led to freedom of choice for consumers and producers.They led to fixed prices for consumers and producers. They led to open competition for consumers.They led to individual ownership of property.They led to more government spending and increased demand.They led to limited choice and communal ownership of property.