Unit 2.2 Economic system

Question 1

Neo liberalism✅

Answer 1

Economic part of classic liberalism

Question 2

Neo conservatism✅

Answer 2

Classic liberal economics and traditional values, deregulation, tax cuts, privatization

Question 3

Keynes✅

Answer 3

Demands side economics 

Question 4

Hayek✅

Answer 4

Less government involvement, current government spending, cutting taxes, closely related to classic liberalism

Question 5

Reganomic✅

Answer 5

Supported Hayek and freedmon

Deregulation, trickle down Economics, spent too much on military,

Gov don’t tax rich company’s in hopes it would trickle down, less taxes let gov involvement

Question 6

 Thatcherism✅

Answer 6

Supported Hayek and freedmon, privatized government market, caused unemployment for government workers

 supply-side
- control supply of money in economy through taxes and interest rates

Question 7

Left✅

Answer 7

Demand side economics
Keynes 
FDR new Deals 
Welfare state
Social programs

Question 8

 right✅

Answer 8

Reganomics 
Thatcherism 
 Hayek
Friedman
Adam Smith
Supply-side economics
 neoliberalism
 neoconservatism


Question 9

Hayek, Friedman, Reagan, thatcher✅

Answer 9

Supported classic liberal principles of liaises-faire

New conservative school of thought

Dislike government involvement in econ

Emphasize greater reliance on private enterprise

Less gov involvement 

Question 10

Monetarism✅

Answer 10

Believes that control of countries money supplies the best means to encourage economic growth and limit unemployment and inflation

Closely associated with Milton Friedman

Question 11

Tony Blair’s third way✅

Answer 11

Mixed economy

Balancing the individualist values of monetarism with the collectivest values of social Justice 

Question 12

Thatcher and Reagan✅

Answer 12

Deregulation

Question 13

Fiscal policy✅

Answer 13

Government spending and taxation

Question 14

Monetary policy✅

Answer 14

Interest rates

Question 15

Stagflation✅

Answer 15

When economic growth is sluggish while inflation is high

Question 16

Democratic Socialism✅

Answer 16

Having a socialist economy in which the means of production are socially and collectively owned and controlled, alongside a liberal democratic political system of government

Question 17

Demand Side economics✅

Answer 17

An economic theory that advocates use of government spending and growth in the money supply to stimulate the demand for goods and services. To counter demand pll inflation governments and central banks would have to implementite monetary and fiscal policies.

Pros

High consumer spending leads to business expansion resulting in greater employment opportunities

Cons

Will cause inflation

Followers

Keynesian

Question 18

Supply side economics✅

Answer 18

an economic concept whereby increasing the supply of goods leads to economic growth, use fiscal policy (tax cuts, government spending, privatization) to influence the economy. In theory supply side reduces inflation by increases productivity and making the economy more efficient.

Pros

Lowers inflation increasing economic efficiency

Cons

Lengthy process
costly

Followers

Hayak
Freedmon
Regan
thatcher