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Why Was the Social Market Economy Such a Success Story

question 53

Essay

Why was the social market economy such a success story from the 1960s to the 1980s? What changed to make it seem less successful, and what does that teach us about the prospects for more extensive government intervention in the economy in the future?


Definitions:

Demand

The desire and ability of consumers to purchase goods and services at various prices.

Law of Demand

States that, all other factors being equal, as the price of a good increases, demand for that good decreases, and vice versa.

Quantity Demanded

The amount of a good or service that consumers are willing and able to purchase at a specific price.

Price

The amount of money required to purchase a good or service, determined by factors such as supply and demand.

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