Macroeconomics: Principles, Problems, & Policies 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0-07766-077-3
ISBN 13: 978-0-07766-077-2

Chapter 2 - The Market System and the Circular Flow - Discussion Questions - Page 49: 13

Answer

Invisible hand

Work Step by Step

The invisible hand is the defense used by the founders of capitalism. The principle of the invisible hand is that, guided by self-interest, the economy will run itself, for each individual acting in their own self-interest will allow the economy to grow.
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