Economics Homework Help

Case 3: Keynes and Hayek: Contrasting Views on Sound Economics and the Role of Government (Case 4 in the text)

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Read the Special Topic 2, pages 439 through 444. You may also want to review Chapters 11 and 12 of Macroeconomics: Private and Public Choice as the role of government and different views of government intervention were discussed.

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Using the Keynes and Hayek: Contrasting Views on Sound Economics and the Role of Government case, Chapters 11 and 12, the knowledge you have gained in this course, as well as at least three additional credible resources, analyze the case by addressing the following:

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• Describe briefly how Keynes’s and Hayek’s economic theory and views differ.
• Contrast the two views on how savings may be harmful or beneficial to the economy.
• Compare the two views on whether the economy would fluctuate more or less over the business cycle without government intervention. Be sure to address both the inherent stability of the market economy as well as the impact of government interventions to steer the economy.
• Hypothesize on which economist theory, Keynes or Hayek, you believe is more accurate and why. Be specific and support your hypothesis with research.