Download What Would Keynes D ould Keynes D ould Keynes Do?

Name _________________________________________ Date _______________________
What Would
Would Keynes Do?
Do?
Directions: John Maynard Keynes was a prominent economist whose ideas have been used to solve economic crises such as
recessions and depressions over the past century. Use the resources listed on page 2 to research answers to the following
questions. Then write a memo to President Obama with advice on how he should use Keynesian theory to address the current
economic recession.
1.
How does Keynes believe people make decisions?
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2.
What is a Keynesian “beauty contest”? What does it have to do with the economy?
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3.
What is Keynesian Economics? Write a working definition.
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4.
Identify one president who relied on Keynes’s ideas to solve an economic crisis. Was his strategy generally thought to
be successful? Why or why not?
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5.
Name one economist whose ideas have been important to the shaping of capitalism. How are his or her ideas similar
to or different from those of Keynes?
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6.
On a separate sheet of paper, write a memo to President Obama with advice on whether and how he should use
Keynesian theory to address the current economic recession.
Resources:
What Would Keynes Have Done? (article)
http://www.nytimes.com/2008/11/30/business/economy/30view.html
How the Government Dealt With Past Recessions (interactive graphic)
http://www.nytimes.com/interactive/2009/01/26/business/economy/20090126-recessions-graphic.html
Times Topics: John Maynard Keynes
http://topics.nytimes.com/top/reference/timestopics/people/k/john_maynard_keynes/index.html
Time 100: John Maynard Keynes
http://www.time.com/time/time100/scientist/profile/keynes.html
The Beauty Contest Game
http://www.psychol.ucl.ac.uk/ljdm/Studentconference/beauty.pdf
Economicae: An Illustrated Dictionary of Economics
http://www.unc.edu/depts/econ/byrns_web/Economicae/EconomicaeK.htm
Does Stimulus Stimulate?
http://www.forbes.com/2009/01/22/stimulus-keynes-taxes-oped-cx_bb_0123bartlett.html