Mercantilism
Merchants are engaged in this and therefore they have given their name to mercantilism
What is trade?
The event that gave birth to Keynes theory
What is the Great Depression?
On opposite sides in the class struggle
What are workers and capitalists?
The theory that came before Monetarism
What is Keynesianism?
The father of classical economics
Who is Adam Smith?
When a country earn more from exports than they spend on imports
What is a favorable balance of trade?
The two tools used in fiscal policy
What are government spending and taxes?
The political ideology connected to Marx
What is socialism?
What monetarists prefer over demand-side policies
What are supply-side policies?
This drives us to make/do what we're good at and sell in order to earn money to use on other goods and services
What is self-interest?
What policy countries should use in order to maximize exports and limit imports
What is protectionism/trade barriers?
Policies aiming at changing the aggregate demand in the economy, either to stimulate it, or dampen it
What are demand-side policies?
The additional value that workers are contributing with and that gives the capitalist the profit
What is surplus value?
When the central bank uses the interest rate to steer the economy
What is monetary policy?
How goods and services should be allocated according to classical economics, very little government intervention
What is free market?
Where the powerful nations got a lot of resources in order to finance war against each other
What are colonies?
The main problem of expansionary fiscal policy according to Monetarists
What is government debt?
Why capitalism is doomed according to Marx
What is (crisis of) overproduction?
What to do in a boom, when there is inflation.
What is increasing interest rate?
Something that drives businesses to improve their products, lower their prices, innovate, and create new products
What is competition?
The goods that countries wanted to fill their vaults with
What are precious metals? (gold/silver/jewels ok)
According to Keynesianism, lower taxes and increase government spending
What to do in a recession?
What the workers should own instead of the capitalists
What are means/factors of production?
The three problems of Keynes theory according to Monetarists
What is high inflation, high unemployment, and high debt?
Answers the question what to produce and moves the resources on the market based on supply and demand
What is the invisible hand?