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What were the social and economic conditions in England in the 1970's?
During the 1970s, the United Kingdom found its economy in a slump. Labor strikes and high inflation added to the troubles. The government tried, but were unable to stop the economic downfall. Unemployment hit the 1.5 million mark by the end of the decade.
Which economic player did John Maynard Keynes feel was capable of restarting the economy during the Great Depression?
The government
Definition of planned economy?
A planned economy or directed economy is an economic system in which the government or workers' councils manages the economy. It is an economic system in which the central government makes all decisions on the production and consumption of goods and services. Its most extensive form is referred to as a command economy,centrally planned economy, or command and control economy
What is keynesianism and how does it work?
Keynesianism is an economic theory that advocates for government intervention in the economy, particularly during times of economic downturn, to stimulate demand and spur growth. It emphasizes the role of aggregate demand in shaping the overall economic output. This can be achieved through measures like government spending programs and monetary policies to stabilize the economy.
What term applies to the economic policy that manages the business cycle by changing government spending?
The term that applies to the economic policy managing the business cycle through changes in government spending is "fiscal policy." This approach involves adjusting government expenditures and tax policies to influence economic activity, aiming to stimulate growth during downturns or cool off an overheating economy. By increasing spending or cutting taxes during recessions, and decreasing spending or raising taxes during expansions, fiscal policy seeks to stabilize the economy.
How do classical and Keynesian economics compare and contrast in terms of their fundamental principles and approaches to economic theory?
Classical economics emphasizes the importance of free markets and minimal government intervention, believing that the economy will naturally self-regulate. Keynesian economics, on the other hand, advocates for government intervention during economic downturns to stimulate demand and stabilize the economy. The key difference lies in their views on the role of government in managing the economy.
What is the economy policy that manages the business cycle by changing government spending called?
The economic policy that manages the business cycle by adjusting government spending is known as fiscal policy. This approach involves increasing or decreasing government expenditures and tax policies to influence overall economic activity, stimulate growth during recessions, or curb inflation during expansions. By altering spending levels, the government aims to stabilize the economy and promote sustainable growth.
What is an example of discretionary stabilization?
An example of discretionary stabilization is when the government implements fiscal policy measures, such as changing tax rates or increasing government spending, to counteract economic fluctuations and stabilize the economy. This can help to stimulate demand during economic downturns or curb inflation during periods of overheating.
Which person developed new economic ideas based on government's borrowing and spending more money during an economic crisis?
The person who developed new economic ideas based on government borrowing and increased spending during economic crises is John Maynard Keynes. His theories, known as Keynesian economics, advocate for active government intervention to manage economic fluctuations, particularly through fiscal policy. Keynes argued that during downturns, increased government spending can stimulate demand and pull the economy out of recession. This approach became particularly influential during the Great Depression and has shaped modern economic policy.
When Federal government uses taxation ans spending actions to stimulate the economy it is conducting?
When the federal government uses taxation and spending actions to stimulate the economy, it is conducting fiscal policy. This approach aims to influence economic activity by adjusting government expenditures and tax rates to encourage growth, create jobs, and stabilize the economy during downturns. By increasing spending or cutting taxes, the government can boost demand and stimulate economic momentum. Conversely, reducing spending or increasing taxes can help cool down an overheating economy.
How does the federal government use financial policies agencies and economic indicators to encourage economic growth and stablize the economy during times of recession inflation and depression?
In the simplest terms 2/3 of the economy is driven by consumer demand. Consumer demand is bouyed by consumer confidence. If the American people are confident in the government and the future they spend money which creates demand for consumer products and thus the economy grows. The government issues policies and reports on economic indicators to further boost the consumer confidence.
Is martial law a command economy?
Martial law is not inherently a command economy; rather, it is a military authority imposed over civilian functions during times of emergency. While martial law can lead to increased government control over economic activities, a command economy specifically refers to an economic system where the government centrally plans and controls production and distribution of goods. In practice, martial law may disrupt economic activities and impose restrictions, but it does not equate to a command economy unless accompanied by policies that centralize economic control.
