4.What is meant by the term neoclassical counterrevo- lution? What are its principal arguments, and how valid do you think they are? Explain your answer.

Q: Would it make sense to argue that rational expectations economics is an extreme version of…

A: As per the definition, the neo classical theory is based on the assumption that people have rational…

Q: Explain neoclassical theory of distribution.

A:

Q: Review the neoclassical model's basic microeconomic presumptions regarding customer behavior.

A: Neoclassical model: This term refers to a model in which supply and demand is used to account for…

Q: Explain why classical assumptions are not realistic

A: Economics is the study of how the scarce resources of society are exploited. It is a social science…

Q: In the neoclassical model, if there is a sudden rise in the aggregate demand curve, in the short and…

A: In the Neoclassical model, the aggregate supply curve is vertical.

Q: O Discuss the Neoclassical theory of distribution and show its strengths and weakness.

A: In neoclassical theory, demand and supply simultaneously determine the quantity and factor prices.

Q: Explain the neoclassical counterrevolution. In your answer: • Discuss the concept of a ‘market…

A: Neo Classical Counterrevolution is regarded as a development theory in economics that was adopted in…

Q: How are Milton Friedman’s theories a critique/response to Keynes’ theories?

A: Milton Friedman advocated for a free market economy with minimal government intervention.Friedman,…

Q: Do you believe that the Hayek's classical AD-AS model explains the factors that cause changes…

A: The Hayek's classical AD-AS model can be illustrated as follows: In the figure, horizontal axis…

Q: Is Keynesian economics relevant in today's new normal? In what way? Explain.

A: According to Keynesian economics economic output is influenced by aggregate demand in short run. It…

Q: 1- Discuss how does the invisible hand of the neoclassical school differs from Smith's?

A: The difference between the invisible hand of Smith's theory and neoclassical school is as :-

Q: Identify and briefly explain the neoclassical argument and the key building blocks of neoclassical…

A: The Classical thought of economics is based on the invisible hand concept of AdamSmith. As per the…

Q: 51. What is the essence of "Keynesianism"? That is, what is/are the indispensable

A: Keynesian accept that, since costs are to some degree unbending, variances in any part of…

Q: Draw and properly label AD-AS graph(s) to show recessionary and inflationary gaps. Then, discuss…

A: Aggregate Demand :-                                       It refers to the total quantity of all…

Q: Explain how each of the following events or policies will affect unemployment in a neoclassical…

A: The Neoclassical economy is abroad theory that concentrates on the role of supply and demand in…

Q: What is the shape of the neoclassical long-run Phillips curve? What assumptions do economists make…

A: The original Philips curve explains the relationship between the inflation rate and unemployment…

Q: (A) It stays the same.

A: The neoclassical zone is known to occur at the right of the SRAS curve where it is being fairly…

Q: Summarize the main implications of the neoclassical consumption model forconsumption and saving.

A: The neoclassical model of consumption is based on the assumption that consumers derive their utility…

Q: hen elasticity of production is

A: The production function describes a boundary which depicts the limit of output which is obtainable…

Q: 1.What is meant by the term neoclassical counterrevolution? What are its principal arguments, and…

A: Neo classical counter-revolution towards the interventionist dependence revolution of 1970s are the…

Q: What is meant by the term neoclassical counterrevolution? What are its principal arguments, and how…

A: A neoclassical counterrevolution is a form of philosophy of economic growth introduced in the 1980s…

Q: The Keynesian model believes that supply creates its own demand. O True O False

A: The statement is false.

Q: 5. Consider the basic neoclassical model. Graphically analyze the effects of: (a) An increase in G…

A: The Neoclassical Growth Theory is an economic growth model that explains how three economic factors,…

Q: Which one of the following statements is false? Group of answer choices -The neoclassical model came…

A: The neoclassical model is an approach or a model that was contributed after the classical economists…

Q: If ti (Cnd)< B(1+ R )u' (C pane), then according to the neoclassical consumption model, what should…

A: The only unique thing about neo-classical model is that it takes into consideration only specific…

Q: 4. What is not an assumption of the Neoclassical view related to inflation? a. Full employment b.…

A: Neo classical models do not assume increasing returns to scale.

Q: Does neoclassical economics focus on the long term or the short term? Explain your answer.

A: The perspective of neoclassical economics states that during the long run, the economy would adjust…

Q: Explain why the neoclassical economists believethat the government does not need to do much…

A: Unemployment refers to people who are employable but can't find work. This group includes those who…

Q: Review the fundamental microeconomic assumptions on the consumers’ behaviour within the neoclassical…

A: Neo classical model: It refers to the model under which the production, consumption, and pricing…

Q: What is market fundamentalism under the neoclassical counterrevolution?

A: Neoclassical economics refers to the revised form of classical economics that believes in free…

Q: A country experiences a recession. What is the most likely policy response from the Neoclassical…

A: The contraction of the business cycle when there is a decline in the activity of the economy is…

Q: n Spring 2020, the U.S. economy once again found itself in an economic crisis, this time due to the…

A: US Government should follow the Keynesian approach. It is because covid 19 has created the situation…

Q: LRAS ADn SRAS ADi Pn En Neoclassical zone ADk Ei Pi Intermediate zone Pk Ek Keynesian zone Yk Yi Yn…

A: Say's law: Say's law was named after the famous french economist "jean- Baptiste say" who was a…

Q: Prompt We have been discussing major macroeconomic concepts like the ADAS Model and Fiscal Policy.…

A: A recessionary economy is defined as a significant decrease in overall economic activity in a…

Q: If u'(Caty) < B(1+ R)u' (c panwe ), then according to the neoclassical consumption model, what…

A: Neoclassical economics is a bunch of answers for economics zeroing in on the assurance of products,…

Q: You're a staffer working for Senator Joe King, a diehard opponent of minimum wages. The Senator…

A: Cost to the society is defined as the welfare loss which is given by the loss of consumers and some…

Q: Given that the Mundell-Fleming model is one of the innovations of neoclassical economics, do the…

A: The Mundell-Fleming model demonstrates that, under a flexible exchange rate environment, fiscal…

Q: Do neoclassical economists tend to focus more on long term economic growth or on recessions? Explain…

A: All economic factors, such as demand, savings, costs, and investment, are beginning to decrease in…

Q: Derive and use the equilibrium in the goods market (Keynesian cross) to explain how a drop in…

A: In the Keynesian cross we have, C=a+cY, where c is the marginal propensity to consume. equilibrium…

Q: Does neoclassical economics view prices and wages as sticky or flexible? Why?

A: Neoclassical economics is a school of thought that is associated with the names of economists such…

Q: A neoclassical economist and a Keynesian economist are studying the economy of Vineland. It appears…

A: Keynesian economists believe that there is nothing like invisible hand theory. It means that many…

Q: (a) Discuss the basic distinction and similarities between neoclassical Macroeconomist and…

A: Economics is the branch of study that deals with the production and distribution of goods and…

Q: According to you what is the difference between Ricardian Model and the HeckscherOhlin (HO) model?

A: The Ricardian model and Heckscher Ohlin model are two models that explain the theory of comparative…