What Is The Theory That Government Spending And Tax Cuts Can Raise Demand Called? The demand-side theory is built on the idea that economic growth is stimulated through demand. Therefore, practitioners of the theory seek to empower buyers. This can be done through government spending on education, unemployment benefits, and other areas that increase the
What Was The Economic System Of Athens? The Athenian economy was based on trade. The land around Athens did not provide enough food for all the city’s people. But Athens was near the sea, and it had a good harbor. So Athenians traded with other city-states and some foreign lands to get the goods and
Which Of The Following Can Be Used By Economists To Define And/or Measure Economic Growth? Which of the following can be used by economists to define and/or measure economic growth? Gross domestic product is the best way to measure economic growth. It takes into account the country’s entire economic output. It includes all goods and
Why Is Scarcity And Choice A Basic Problem In A Society? Explain why scarcity and choice are basic problems in economics? They are basic problems of economics because every good or service has a limit to be reached and people have to decide what to choose based on their needs and wants. … -Capital is
Why Might Economic Advisers To The President Disagree About A Question Of Policy? Economic advisers to the president might disagree about a question of policy because of differing scientific judgments or differences in values. Why do economists disagree? Economists disagree because most of them usually fall into the two competing economic schools of thought: Keynesian
Which Of The Following Do Economists Assume Rational People Do? Economists assume that people will make choices in their own self-interest. They will choose those things that provide the greatest personal benefit, and they’ll avoid or forego those that aren’t as personally valuable and compelling. That’s what we mean by the assumption of rationality. What
Why Is The Slow Growth That Can Result From A Contractionary Policy A Positive Effect Quizlet? Why is the slow growth that can result from a contractionary policy a positive effect? It can increase interest rates. It can decrease available credit. Which of these practices describe how producers in oligopolies generally try to create competition
Why Is Equilibrium Important In A Market Economy? Equilibrium is the state in which market supply and demand balance each other, and as a result prices become stable. Generally, an over-supply of goods or services causes prices to go down, which results in higher demand—while an under-supply or shortage causes prices to go up resulting
What Is Economic Research? ERPA’s focus is on short- and medium-term research in the areas of productivity, competitiveness, market structure, framework policies, business innovation, business investment, and sectoral trends and issues. … Why is economic research important? Considered a social science, economics uses scientific methods to understand how scarce resources are exchanged within society. Economists
What Is John Maynard Keynes Known For? John Maynard Keynes is best known as the founder of Keynesian economics What is John Maynard Keynes theory? Keynesian economics is a macroeconomic economic theory of total spending in the economy and its effects on output, employment, and inflation. … Based on his theory, Keynes advocated for increased