The Fundamental Premise of Classical Economics is that competition is (a)  

Classical:

Competition will cause businesses to always (a)   products in order to win the market.

Classical:

Competition will also cause businesses to (a)   prices in order to win the market.

Classical:

The trend of competition causing business to lower prices is:

(a)  

Classical:

The Classical School of Thought will cause consumers to get products that are (a)   and cheaper

Classical:

The Classical School of Thought will cause consumers to get products that are better and (a)  

The Classical economics believed that inefficient companies will (a)  

Classical:

If new companies enter the market, they must be more (a)   in order to compete

Jean Baptiste Say built on Smith’s analysis and gave us the theory that is known today as:

(a)  

Classical:

If suppliers overproduce, they can correct the surplus by cutting production and lowering (a)   .

Classical:

If suppliers overproduce, they can correct the surplus by cutting (a)   and lowering prices.

Classical:

The economy will re-balance because wages are (a)   but so are prices.  Real wealth balances.

Classical:

The economy will re-balance because wages are lower but so are (a)   .  Real wealth balances.

Classical:

If suppliers under-produce, they can correct the shortage by increasing (a)   and raising prices.

Classical:

If suppliers under-produce, they can correct the shortage by increasing production and raising (a)   .

Classical:

The economy will re-balance because wages are higher but so are (a)   . Real wealth balances.

Classical:

The economy will re-balance because wages are (a)   but so are price. Real wealth balances.

The summary of Trickle Down is often stated as “____ _____ ___ ___ _____”

(a)  

Government in this Classical world has a critical role.

Government must make sure that (a)   occurs.

Classical:

Government must stop (a)   or unions, which inhibit competition.

Classical:

Government must stop monopolies or (a)   , which inhibit competition.

Classical theorists also want to always lower taxes (a)  

in order to reduce government interference

Classical:

In the Long Run, the Economy will (a)   near efficient Full Production.

Keynesian Economics

Say’s Law is generally a myth because businesses can’t really lower prices at will.  This is known as:

(a)  

Keynesian Economics:

Consumers will also be paid by businesses, but will always (a)   some of the income.

In Keynesian Economics, Consumers saving their incomes will cause a constant (a)   of wealth.

Keynesian economics:

Because of Sticky Prices and leakage of wealth, businesses will be under constant pressure to (a)   jobs and production.

Keynesian:

Prices can also increase easily, but not decrease.  This is known as the (a)   Effect.

Markets can reach efficiency and full employment, but Keynesians assume that they will soon become:

(a)  

In Keynesian (a)   will probably become the economic norm because of markets eventually becoming inefficient.

Because of Recessions becoming the economic norm in Keynesian Economics, the government must step in and correct the missing ______ _______.

(a)  

In Keynesian Economics congress will represent the interest of the people so they will do their best to use to the tools of: (a)   and spending.

In Keynesian Economics congress will represent the interest of the people so they will do their best to use to the tools of: taxes and (a)  

In Keynesian economics, congress can't wait for the potential long run balance of classical because the (a)   need help.

Keynes: “In the Long Run we are all (a)   ”

Expansionary Policy in Keynesian is when recessions occur, Congress should (a)   taxes, increase  government spending.

Contractionary Policy in Keynesian is when inflation occurs, Congress should (a)   taxes, cut government spending.

In Keynesian Congress can also create programs that keep the economy from crashing so much.  These are known as:

(a)  

The Current US Chairman of the System? (2022)

(a)  

Fundamental Premise of the Monetary School is that competition is good but needs ____ ______.

(a)  

Monetary:

Average recession in the US last about?

(a)  

Monetary:

We only “know” a recession has started after at least 

(a)   months have passed.

Monetary:

Even if Congress agrees on a policy, it can take many more (a)    to enact.

Monetary:

By the time the policy comes into force, the recession may have already:

(a)  

Monetary:

Congress may be able to cut taxes during recessions, but they will never have the will to (a)   taxes to fight inflation.

Monetary:

Since policy takes a lot of time to pass, the best way to correct economic flaws is to have the ____ _____ act quickly.

(a)  

Monetary: The federal reserve focuses on stable (a)   that helps control demand pull inflation.

Monetary:

The federal reserve focuses on long run growth that has realistic growth (a)  

The federal reserve allows the government to be non-political and an independent agency that controls national growth by manipulating _____ ______.

(a)  

By using the federal reserve and interest rates, (a)   will be kept under control and healthy for businesses and other borrowers

Monetary:

When recessions threaten, (a)   interest rates on borrowing.

Monetary:

When inflation threatens, (a)   interest rates on borrowing.