Economic Policy: Influential Theories Answers
0 verified answers
1
Free Preview
The graph shows how individuals affect economic growth.
A
They work in their own self-interest.B
They work as part of a unified group.C
They work to influence the money supply.D
They work to influence the economy.2
Free Preview
Milton Friedman argued that consumers are more likely to alter their behavior based on
A
changes in the unemployment rate.B
short-term changes in the economy.C
long-term changes in the economy.D
changes in the inflation rate.3
[BLANK]
A
producersB
consumersC
governmentD
prices4
The General Theory of Employment, Interest and Money was written by
A
John Maynard Keynes.B
Adam Smith.C
Milton Friedman.D
Friedrich August von Hayek.5
A government might enact expansionary spending when it is trying to
A
increase aggregate demand for goods.B
decrease aggregate demand for goods.C
slow an economic expansion.D
lower a budget deficit.6
What are the goals when a government uses expansionary monetary policy? Check all that apply.
A
increasing its money supply to boost the economyB
decreasing its money supply to slow the economyC
increasing its money supply to speed business expansionD
decreasing its money supply to curb business expansionE
decreasing its interest rates to increase investment spending7
John Maynard Keynes believed that governments should increase spending in order to
A
increase prices.B
increase supply.C
decrease demand.D
increase demand.8
Monetarism plays a role in economic growth by
A
expanding government intervention.B
influencing the supply of goods.C
expanding government spending.D
influencing the supply of money.9
Why did Friedrich Hayek call expansionary spending dangerous?
A
He felt it could lower the money supply and cause deflation.B
He felt it could lead to inflation and poor decisions by consumers.C
He felt it could lead to deflation and poor decisions by consumers.D
He felt it could lower available credit and cause a drop in prices.10
The graph shows Keynes's theory of aggregate demand.
A
Prices and output would drop, and the equilibrium point will stay the same.B
Prices would rise, and output would drop in the short run.C
Prices and output would rise, and the equilibrium point will change.D
Prices would rise, and output would drop in the long run.Did you find these answers helpful?
Verified answers available
TRY EDGENUITY HACKS
- Auto Complete Exams
- Auto Complete Assignments
- Skip Videos Instantly
50,000+ students using this