Question

match each economist to his economic belief. tiles adam smith friedrich von hayek milton friedman john maynard keynes pairs less government intervention gives people more economic freedom. arrowboth government should not control the money supply. arrowboth government intervention is necessary for stability. arrowboth competition is a regulatory force. arrowboth nextreset

Answer 1

The correct matches are the following.

Adam Smith. Competition is a regulatory force.

Friedrich von Hayek. Less government intervention gives people more economic freedom.

Milton Friedman. The government should not control the money supply.

John Maynard Keynes. Government intervention is necessary for stability.

Here, we are talking about renown economists that established important concepts on economics and the role the government should play in the face of different scenarios.

Adam Smith wrote the book "The Wealth of Nations" in 1776, where he expressed ideas that supported competition in open markets. In "Capitalism and Freedom," Milton Friedman supported the idea that the money supply should be free of government control. John Maynard Keynes believed that it was necessary for the intervention of the government to promote the economy of a country. Many countries in Latin America have followed his advice and create social programs to help the ones in need. On the contrary, Friedrich von Hayek established in "The Road to Serfdom," that the best way to help people invest is that the government stayed out of any kind of control. This way they would be freer to create wealth.

Answer 2

1. Friedrich von Hayek ------------Less government intervention gives  people more economic freedom.

To Hayek, less government intervention implied more economic freedom. He trusted that when individuals are allowed to pick, the economy runs all the more proficiently. In the United States, the most grounded supporters of Hayek's thoughts were a gathering of business analysts at the University of Chicago. Known as the "Chicago School of Economics," this inexactly shaped, informal gathering of financial specialists was for the most part connected with free market libertarianism. The name alludes to financial specialists who got their tutoring in the Economics Department at the University of Chicago. To date, almost 50% of all Nobel Prizes in Economics have been won by analysts with connections to Chicago.  

2. Milton Friedman ---------Government should not control the  money supply.

Milton Friedman saw the 1920s as years of indispensable and sustainable growth in the economy. Amid this period the Federal Reserve outstandingly extended the cash supply. This development was not reflected in an expansion in the normal cost level, on the grounds that fiscal powers were killed by simultaneous increments in efficiency.  

3. John Maynard Keynes ----------Government intervention is necessary  for stability.

John Maynard Keynes made the hypothetical contentions for another kind of monetary system: government intervention used to smooth out the business cycle. Keynes died in 1946, yet his thoughts made the Keynesian school of financial aspects and prompted the improvement of macroeconomics. Keynes' belief system overwhelmed the financial worldview from 1945 until the late 1970s. As indicated by Keynes, free markets don't generally contain self-adjusting components; some of the time government intervention is important to limit downturns and advance development. He trusted that without state help, the blasts and busts in the business cycle could winding wild.

4. Adam Smith ------------Competition is a regulatory force.

A market economy is a monetary framework in which people claim the greater part of the assets - land, work, and capital - and control their utilization through willful choices made in the commercial center. It is a framework in which the legislature assumes a little role. In this kind of economy, two powers - self-interest and competition - assume a critical job. The role of self interest and competition was depicted by financial specialist Adam Smith more than 200 years prior and still fills in as basic to our comprehension of how showcase economies work.