According to the theories of Friedrich August von Hayek, the economy may be too complicated to think in terms of .

2 answers:

6 0

Hayek believed the economy too complicated to think in terms of aggregates. This is the foundation of monetarism theory. He believed that people are unpredictable in their choices. Consequently, expansionary policy was potent because it could potentially lead to inflation and affect individual choices.

Murljashka [212]3 years ago

5 0

According to the theories of Friedrich August von Hayek, the economy may be too complicated to think in terms of aggregates.

Hayek believed that expansionary policy was dangerous and could lead to severe inflation.

Milton Friedman supported changes to monetary policy to influence economic growth.

This is correct.

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