Lesson 34 - unit 7 Flashcards
What is inflation?
A general increase in price for goods and services
What did Milton Friedman say causes inflation?
The government printing too much money, specifically when the quantity of the money rises more rapidly than the output of goods and services.
In what two ways did the Federal government pay for its increasing expenditures in the 1960’s and 1970’s?
They got loans and printed more money.
What is stagflation?
When there is significant inflation and rising unemployment resulting in a stagnant economy.
What is demand-pull inflation?
An increase in demand without an increase in supply resulting in pulling prices higher.
What is cost-push inflation?
When higher production costs push prices higher.
What is purchasing power?
The ability of an individual consumer to buy goods and services.
In the interview with Milton Friedman, how does Friedman describe health care?
As a socialist-communist system that is paid for by a 3rd party with no direct relation between patient and physician.
What does Friedman say caused the Great Depression?
Failure of the government to manage money supply.
What is Friedman’s position on school vouchers?
He supports them because they fund children instead of schools and lets parents choose the school.
