Home Work 3

Case 3-2 page 100

3-13
A) The Europian commisions bailed out banks in Greece and Ireland in order
to avoid depression a shrinking economy.
B) They did not let the diffulct becaude it would cause political unrest and
generally bailouts givines the country the opportunity to revive its country
3-14
A) I believe socrates and zapatero were more like Keynesians. Keynesian
belief is that goverments effort would restore more stability while Hayek
believed the lather. Since both presidents wanted to generate economic
growth via govement they would be more like Keynesian strategies.
3-15
a)Citizens in France great britain and elsewhere stage protestes when the
goverment imposes austerity measures because the heavily rely on the
govemnet for social activities pensions etc and these measures cuts back on
the govemental benefits that are put in place for them