Economic Systems

Question 1

3 types of economies
-what caused classical liberal thinkers to question the classical liberalism

Answer 1

1. market- capitalism
2. mixed- in between
3. planned- communism
   -the Great Depression and poor treatment of people

Question 2

-what happened in the roaring 20s and dirty 30s
What did Roosevelt and his New Deal suggest

Answer 2

-in the 20’s, economy had a boom but it busted later because many promises were broken and unemployment rates rose, backs tried to lend money to new businesses
-government must go into debt and the new Deal gave jobs and money to those who needed it. classical liberals disagreed and saw this as communist.

Question 3

What did Keynes believe in

Answer 3

during bust, government should spend money and reduce taxes and during boom it should spend less and increase taxes

Question 4

What did Fredich Hayek and Milton Friedman
-when did they come into effect
-what did they believe

Answer 4

believed in limited government role as they inhibited freedom and limited market

Question 5

What did Regan +Tatcher believe

Answer 5

tried to shift right by undoing government and privatizing ad reducing taxes

Question 6

VOCAB
-demand side economics
-supply side economics
-neoliberalism
-macro/microeconomics

Answer 6

-demand for goods drives economy
-lower taxes will increase supply of goods and increase growth
-favours free market and classical liberalism
-big vs small economic factors/desires