GOVT 2302 - Chapter 16 Assignment

GOVT 2302 Chapter - 1 a laissez-faire capitalism the idea that government should have only a minimal role in the economy Proponents of

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1.) a.) laissez-faire capitalism – the idea that government should have only a minimal role in the economy. Proponents of laissez-faire (literally, “let to do”) argue that the economy will flourish if the government leaves it alone. b.) Keynesians – these people argue that by pumping money into the economy, government can stimulate demand and create a cycle of increased production and jobs that will pull the economy out of recession. Such ways include increasing public spending and temporary tax cuts. c.) monetarists – believe that the role of the government in managing the economy should be limited to regulating the supply of money. More active government management of the economy, monetarists argue, either has little effect or actually makes the economy worse. d.) supply-side economics – these people believe that reducing the role of government in the economy will promote investment and spur economic growth. Reducing tax rates is the centerpiece of the supply-side economic strategy. I am in favor of the laissez-faire capitalism approach because I feel that if the government has a
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This note was uploaded on 02/16/2012 for the course GOVT 2302 taught by Professor Billy during the Spring '12 term at University of Texas at Austin.

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