Explain the Differences Between How a Market Economy and a Mixed

question 34

Essay

Explain the differences between how a market economy and a mixed economy decide what to produce,how to produce it,and for whom to produce it.

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Definitions:

Monetarists

Economists who believe that the money supply is the main determinant of economic growth and control over inflation.

Quantity Theory

A theory in economics that describes the relationship between the quantity of money in an economy and the level of prices of goods and services.

Quantity Theory

The theory suggesting that the amount of money in circulation in an economy directly affects price levels and inflation.

Doubled

A term indicating that a quantity, value, or size has increased by 100 percent, resulting in its multiplication by two.