keynesian economics and welfare states quiz

Question 1

classical luberalism was at its peak

Answer 1

in the great depression

Question 2

what is progressivism that was shown in th great depression

Answer 2

-president rossevelt forced factory owners to make a fair deal with workers and thought it culd stop eploitation

• square deal in 1920

Question 3

what was the square deal

Answer 3

rossevelt in 1920s promised fairness for things like labour and making sure theres no explotation

later extened it to other groups

Question 4

who were the leaders in the great depression

Answer 4

1) hoover was republican - didnt care to interven in the economy to help anyone because thought it was against classical liberalism and ignored ppl that were dying

2) rooseevelt (democrat) - cared ab ppl and made solution to help people with his new eal

Question 5

how did the stock market even crash?

Answer 5

when ppl wanted money for stocks banks would give money out to them (margin)

soon banks had no money in them so they needed to call back all the money they gave out for stocks (margin call)

so people were trying to sell socks but everyone was selling and there was more sellers then buyers so banks went out of buissness there was no money for ppl to spend

Question 6

when was the great depression

Answer 6

1930

Question 7

what did the new deal want

Answer 7

objective was to stablilize the american economy

there was many little orgainizations to help in many different areas

emergency banking act (EBA) was to protect banks from collapseing again and to get ppls confidence back to put money in banks

tennessee vally authority act or (TVA) was work to construct dams and power plants to promote economic development

let america go into debt on purpose to create jobs for gov

his fiscal plicy was to cut back taxes and spend more money on creation of jobs

Question 8

keynesian economics

Answer 8

created by keynes and he wanted to stop the harsh ups and downs boom and bust cycles the economy goes through

Question 9

what happens in a boom cycle (expansion)

Answer 9

• full employment
• economy does good
• high demand
• high investment
• inflation in products from high demand

Question 10

in keynesian economics whats the gov response to expansion boom cycles

Answer 10

-the gov increases taxes
-decreases expenditures (spend less money)
- increase intrest rates

the idea is during the hard times to give more taxes bc people have more money bc more employment and raise intrest on products so people wont overconsume and buy too much

Question 11

what are recession (bust cycle) charicteristics

Answer 11

• lots are unemployed
• deflation
• low investment
  -low demand

Question 12

whats gov response to recessions / bust cycles

Answer 12

• decrease taxes
• increase gov expendicures (spending more money)
• lower intrest rates

idea is during those hard times to have more social programs and lower intrest rates so ppl buy things to start up economy

Question 13

The welfare state

Answer 13

• economy is free market
• gov gets involved to modify the demand to ensure everything is stable and everyone has a basic standard of living through social programs
  -right wing

Question 14

when was US a welfare state

Answer 14

1930 - 1980

Question 15

is canada a welfafre state

Answer 15

yes

Question 16

what is welfare capitalism

Answer 16

• classical liberals seeing some changes made to it and rights of workers were consired so gave fair wages and stuff
  -buissneses rejected idea