Podcast
Questions and Answers
What does Says' Law suggest about the relationship between supply and demand?
What does Says' Law suggest about the relationship between supply and demand?
Says' Law posits that supply creates its own demand, meaning production naturally balances with consumer demand.
According to Keynesian economics, what should governments do during periods of recession?
According to Keynesian economics, what should governments do during periods of recession?
Governments should increase spending to boost aggregate demand and stimulate the economy.
Who is a key proponent of supply-side economics, and what do they criticize?
Who is a key proponent of supply-side economics, and what do they criticize?
Milton Friedman is a key proponent, and he criticizes Keynesian economics for causing economic instability through intervention.
What is the primary focus of classical economists regarding government intervention?
What is the primary focus of classical economists regarding government intervention?
Signup and view all the answers
How does Keynes view the relationship between saving and investment?
How does Keynes view the relationship between saving and investment?
Signup and view all the answers
What approach do monetarists advocate in terms of monetary policy?
What approach do monetarists advocate in terms of monetary policy?
Signup and view all the answers
What happens during high inflation according to Keynesian economics?
What happens during high inflation according to Keynesian economics?
Signup and view all the answers
What does the 'invisible hand' theory suggest in the context of classical economics?
What does the 'invisible hand' theory suggest in the context of classical economics?
Signup and view all the answers
