Post-WWII DEMOCRACIES in Europe [AP Euro Review—Unit 9 Topic 6]

What was a primary reason for the economic prosperity experienced by Western European states in the 1950s and 1960s?

• The collapse of the Soviet Union.

• Significant financial aid from the Marshall Plan.

• A decrease in global trade barriers.

• The discovery of new natural resources.

Which economic theory advocates for government intervention, specifically through increased spending, to stimulate the economy?

• Laissez-faire capitalism.

• Keynesian economics.

• Supply-side economics.

• Monetarism.

What term describes a state where the government provides extensive social programs and benefits to its citizens, such as subsidized healthcare and unemployment insurance?

• Authoritarian regime.

• Free-market economy.

• Welfare state.

• Colonial power.

What economic phenomenon, characterized by a stagnant economy combined with rising prices, emerged in Western Europe during the 1970s and early 1980s?

• Deflation.

• Hyperinflation.

• Stagflation.

• Economic boom.