Question

Hayek is best known for his contribution to the understanding of __

Answer 1

Answer:

-price changes.

-inflation, negatively .

-could not.

Explanation:

-Hayek´s theory, on how changing prices provide data useful for people to define their plans is a significant milestone in economics, led him to win the Nobel Prize.

-In his theory, fighting recession with expansionary policies was believed to lead to too many investment plans that could not actually be maintained, limiting a needed process of adjustment and setting up possibilities for future inflation.

-Hayek stated as a fallacy of the dogma of perfect competition the idea that producers can know as a fact the shape of the consumers demand curve because that´s a variable to be discovered.

Answer 2

1- price changes

2- inflation; negatively

3- could not