Economic Policy: Influential Theories

Front 1

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

Back 1

John Maynard Keynes.

Front 2

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

Back 2

increase demand.

Front 3

Monetarism plays a role in economic growth by

Back 3

influencing the supply of money.

Front 4

According to Milton Friedman, _____ policy is the best way to influence the economy’s aggregate demand.

Back 4

monetary

Front 5

An economic thinker who influenced early economists was

Back 5

Adam Smith.

Front 6

Expansionary monetary policy is used when a government

Back 6

increases its money supply to boost the economy.

Front 7

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

Back 7

John Maynard Keynes and Milton Friedman

Front 8

Which best describes the idea behind the "invisible hand"?

Back 8

Producers and consumers work together, which guides the economy.

Front 9

A government might enact expansionary spending when it is trying to

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increase aggregate demand for goods.

Front 10

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

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long-term changes in the economy.