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100 POINTS!!!!!! AP Government and Politics

TWO ECONOMIC THEORIES

Topic: Read the questions on the chart below. For each question, provide two answers: one based on the Keynesian theory of economics, and one based on monetarism. Use complete sentences to answer the questions.

100 POINTS!!!!!! AP Government and Politics TWO ECONOMIC THEORIES Topic: Read the-example-1
User Ctwhome
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1. Keynesian Economics: Focus on the demand side; Monetarism: Emphasize the supply side. 2. Keynesian Economics: Increase government spending; Monetarism: Control money supply for stability. 3. Keynesian Economics: Active government role; Monetarism: Limited government involvement. 4. Keynesian Economics: Favored by liberals; Monetarism: Favored by conservatives. 5. Keynesian Economics: Addresses unemployment and instability; Monetarism: Promotes long-term price stability. 6. Keynesian Economics: Risk of budget deficits; Monetarism: Risk of relying too much on monetary policy.

1. Keynesian Economics: The primary focus should be on the demand side of the economy, emphasizing government intervention to stimulate spending and boost overall demand.

Monetarism: The primary focus should be on the supply side, emphasizing controlling the money supply and letting markets naturally adjust.

2. Keynesian Economics: Increase government spending to stimulate demand and create jobs, promoting economic recovery.

Monetarism: Control the money supply and maintain a stable monetary policy to encourage long-term economic growth.

3. Keynesian Economics: The government should play an active role, especially during economic downturns, by implementing fiscal policies to stabilize the economy.

Monetarism: The government's role should be limited, with an emphasis on maintaining a stable monetary environment and allowing markets to self-adjust.

4. Keynesian Economics: Politicians favoring this approach are often liberal, as it aligns with their belief in active government intervention for economic stability.

Monetarism: Politicians favoring this approach are often conservative, valuing free-market principles and limited government involvement.

5. Keynesian Economics: One benefit is the ability to address unemployment and economic instability through active government policies.

Monetarism: One benefit is the emphasis on stable monetary policies, which can lead to long-term price stability and economic growth.

6. Keynesian Economics: One drawback is the potential for budget deficits and government debt due to increased spending during economic downturns.

Monetarism: One drawback is the risk of relying too heavily on monetary policy, which may not address structural issues in the economy.

User Othmane Nemli
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