Unit 5 Flashcards
1
Q
Hayek (economic policy)
A
- Free market approach
- wages in long run are flexible
2
Q
Keynes (economic policy)
A
- govt should be involved
- fiscal/monetary policy
3
Q
phillips curve def
A
shows the tradeoff between inflation and unemployment
4
Q
why is the long run phillips curve vertical?
A
in the long run, there is no tradeoff between inflation and unemployment
5
Q
govt policies that result in long-run growth (3)
A
- education/training
- infrastructure spending
- production/investment incentive
6
Q
supply side fiscal policy
A
govt policies designed to increase production
