POSI 2320 Exam 1

POSI 2320 Exam 1 Pure Capitalist Economy - ANSWER--private individuals and companies own the modes of producing goods/servies -government does NOT enact laws aimed at influencing the marketplace Regulated Capitalist Economy - ANSWER--government enacts policies to influence the health of economy -what the USA has Laissez Fare - ANSWER--hands-off stance of a government in regard to the marketplace -Adam Smith, "Wealth of Nations;" invisible hand George Washington; 1789 - ANSWER-Who signed first import tariff and when? Keynesian theory - ANSWER--recommends, during a recession, national government should increase spending/decrease taxes & vice versa during a boom -deficit spending advocated by FDR and John Maynard Keynes Supply-side economics - ANSWER--cutting taxes and deregulating business to stimulate economy -advocated by Reagan during high unemployment and inflation stagflation - ANSWER-high inflation Monetarism - ANSWER--government's proper economic role is to control inflation by controlling amount of money in circulation -advocated by Milton Friedman 5% - ANSWER-low unemployment (healthy economy)