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QUESTION

Part Two:

Examine each source

draft a response in paragraph form in which you

  • interpret each source to demonstrate your understanding of how each source links to liberalism

AND

  • explain one or more relationships that exist among the three sources

Source #1

Is a 1936 poster that advertises free adult education classes sponsored by the new York board of education and the work progress administration under franklin Delano Roosevelt's new deal

Source # 2

Is a picture with a booster cable attached to 2 batteries. The first battery says "tax" and the second says "rebate" You need to think of what booster cables do.

Source # 3

In particular, Keynes concluded that classical economics rested on a fundamental error. It assumed, mistakenly, that the balance between supply and demand would ensure full employment. On the contrary, in Keynes's view, the economy was chronically unstable and subject to fluctuations, and supply and demand could well balance out at an equilibrium that did not deliver full employment. The reasons were inadequate investment and over-saving, both rooted in the psychology of uncertainty.

The solution to this conundrum was seemingly simple: Replace the missing private investment with public investment, financed by deliberate deficits. The government would borrow money to spend on such things as public works; and that deficit spending, in turn, would create jobs and increase purchasing power.

From Commanding Heights by Daniel Yergin and Joseph Stanislaw, Copyright © 1998.

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