Historical Context
A period after WWI in which capitalism was Laissez-Faire, people were getting rich, businesses were over-producing, and the stock market was booming.
What is the Roaring 20s?
Keynes believed that we must find e_______ between too much supply and too much demand.
What is equalibrium?
Two things are needed in order for consumers to spend.
What are income and confidence?
This US president came up with The New Deal.
Who is Roosevelt?
Economists discovered that the economy has _____ and ______ cycles instead of a continuous upward trajectory.
What is BOOM and BUST?
Keynes believed that "this" could save capitalism.
What is government intervention?
Effective demand is achieved through:
Consumer Spending, business __________, and government spending
What is investment?
Relief, Recovery, and Reform were known as
What are the three Rs?
The actual economic cysle is: Recovery, Boom, ________, Bust
What is recession?
This type of argument asserts that we must put humanity back into economics.
What is a moral argument?
Government spending and taxation is ________ policy.
What is fiscal policy?
Regarding the three Rs, creating governments projects to stimute the economy is
What is recovery?
The Stock Market Crashed in this year.
What is 1929?
Another name for Demand Side Economics: ______ economy.
What is mixed economy?
Control of interest rates, banking regulations, and credit is ________ policy.
What is monetary policy?
To prevent another great depression, Roosevelt knew he had to ______ banking and businesses.
What is reform?
In an ___________ _________, prices rise to unsustainable levels, and they are often detached from the asset's true worth or earnings potential.
What is an economic bubble?
Keynes believed that the three important characters in the economy are: consumers, producers, ________
What is the government?
What the central bank does during a recession in order to stimulate spending.
What is lower interest rates?
Regarding the three Rs, giving people food stamps is an example of what?
What is relief?