a. How did Milton Friedman alter the consensus that had developed in the aftermath of the Great Depression on how economy should be managed? O He developed policy measures that enable the government to intervene to move the business cycle into recession growth precisely as needed. He observed that booms, as well as busts, need to be managed to reduce volatile swings in the business cycle. He demonstrated that fiscal policy worked better than monetary policy when fighting recessions. He provided theoretical evidence that the economy is self-correcting in the short run but needs government inter in the long run. b. What is the current goal of policy makers in managing the economy? To maximize the profits of corporations and the wages of labor To eliminate any and all busts or recessions

a. How did Milton Friedman alter the consensus that had developed in the aftermath of the Great Depression on how economy should be managed? O He developed policy measures that enable the government to intervene to move the business cycle into recession growth precisely as needed. He observed that booms, as well as busts, need to be managed to reduce volatile swings in the business cycle. He demonstrated that fiscal policy worked better than monetary policy when fighting recessions. He provided theoretical evidence that the economy is self-correcting in the short run but needs government inter in the long run. b. What is the current goal of policy makers in managing the economy? To maximize the profits of corporations and the wages of labor To eliminate any and all busts or recessions

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

ChapterST4: Keynes And Hayek: Contrasting Views On Sound Economics And The Role Of Government

Section: Chapter Questions

Problem 3CQ

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