Explain the basic principles of capitalism, as outlined by Adam Smith in the late 18th century

    Free Market = usually a good way to run an economy.

   Government can help a Free Market.

   A Country's Standard of Living is determined by Productivity.

   Prices of Good go up when government prints money.

   There is a temporary tradeoff between unemployment and inflation.

Explanation:Smith never uses the term “capitalism;” it does not enter into widespread use until the late nineteenth century. Instead, he uses “commercial society,” a phrase that emphasizes his belief that the economic is only one component of the human condition.

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