Hayek is best known for his contribution to the understanding of __

Hayek disagreed with Keynes about expansionary policy because it could cause__ and ___influence consumer decisions.

Unlike Keynes, Hayek believed that consumer actions ___be accurately displayed on a supply and demand curve.

1 - price changes

2 - inflation; negatively

3 - could not

-price changes.

-inflation, negatively.

-could not.

Explanation:

-Hayek's theory, on how changing prices provide data useful for people to define their plans is a significant milestone in economics, led him to win the Nobel Prize.

-In his theory, fighting recession with expansionary policies was believed to lead to too many investment plans that could not actually be maintained, limiting a needed process of adjustment and setting up possibilities for future inflation.

-Hayek stated as a fallacy of the dogma of perfect competition the idea that producers can know as a fact the shape of the consumers demand curve because that's a variable to be discovered.