Crash Course Economics #8

Father of Communism

When government $ spent, expands in the economy by being spent

When the Public sector(govt) replaces Private sector jobs/services

The economic concept of guns or butter means that

This economist believed that the government MUST be involved in running the economy..

Adjusting Government spending and taxes to influence the economy is.....

Government spending is increased to help avoid a contraction in the economy.

What is a stock?

Opportunity cost

Money paid to borrow money

When the Government slows down spending and raises taxes to slow economy...

When the Government spends MORE than it takes in in taxes....

When real GDP is above potential GDP....

What is Inflation

All these are Factors of Production except!!!

When a government Raises Taxes and cuts spending in its budget

When real GDP is lower than potential GDP...

What are taxes?

Adam Smith is the father of modern economics

Since the government couldn't control the invisible hand, what did they call capitalism?