The Ultimate Economic Theories and Policies Quiz

The passage discusses the perspectives and contributions of several economists towards the development of economic systems and policies. John Meynard Keynes is credited with the idea of government intervention in the economy to promote certain sectors or establish regulations. His theory of interventionism focused on the level of spending, specifically low government spending, as the cause of depression. Joseph Schumpeter believed that capitalism was characterized by creative destruction and social forces like the rise of entrepreneurs, innovation, and competition. Paul Samuelson advocated for the use of government policy to "fine-tune" the economy using tools like monetary and fiscal policy to stabilize economic growth, employment, and inflation. The passage also discusses the Gold Standard, the Smoot-Hawley Tariff Act, and the Reciprocal Trade Agreement Act. Additionally, the passage explains the concept of embedded liberalism, multilateralism, and the three pillars of the Bretton Woods System. Finally, the passage provides information on the International Monetary Fund (IMF) and the World Bank, including quota subscriptions, borrowing limits, and the Central goal of the World Bank.