Unformatted text preview: #41 In an essay of at least four well-developed paragraphs, discuss U.S. economic policy. Be sure to include the following information in your essay: * Compare and contrast the economic theories of Keynesianism and monetarism. * Explain how a budget deficit is created, how the national debt influences the U.S. economy, and how the federal government attempts to balance the federal budget. John Maynard Keynes was an economist educated at Eton College. Keynes said that, if they were left to them selves, markets would come up with economic booms and busts that would be damaging. He thought that Governments should step in in markets to control how fast they would grow by changing the size of Government spending and the level of interest rates. Monetarism says that globalization and how interconnected markets are made it so that there was no role for sovereign governments, and that regulation was the problem rather than the solution in any case. Monetarist economics is primarily governments, and that regulation was the problem rather than the solution in any case....
View Full Document
- Spring '10
- Government, budget deficit, United States public debt, aggregate supply curve