Unit 5 Flashcards

1
Q

Hayek (economic policy)

A
  1. Free market approach
  2. wages in long run are flexible
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2
Q

Keynes (economic policy)

A
  1. govt should be involved
  2. fiscal/monetary policy
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3
Q

phillips curve def

A

shows the tradeoff between inflation and unemployment

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4
Q

why is the long run phillips curve vertical?

A

in the long run, there is no tradeoff between inflation and unemployment

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5
Q

govt policies that result in long-run growth (3)

A
  1. education/training
  2. infrastructure spending
  3. production/investment incentive
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6
Q

supply side fiscal policy

A

govt policies designed to increase production

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