Q: The simple Keynesian model a. understated the effect of an increase in government spending by…
A: In the simple Keynesian model when income is determined, the price level is assumed to be constant…
Q: According to Keynes, wealth or credit is a factor that affects consumption. An example of wealth is…
A: Wealth is the value of economic resources either in terms of goods or money measured at a particular…
Q: Keynes recommended that high unemployment should be remedied with a reduction in the money…
A: According to Keynesian macroeconomics, price and wages are inflexible. Any change in the market…
Q: What was Keynes’s solution to the Depression?
A: Keynesian economics was first highlighted during the Great Depression because it was considered as…
Q: How would an increase in the interest rate affect consumption and investment function?
A: Consumption signifies the amount of currencies spent on buying current goods and services by the…
Q: Investment is purely financial and has no impact on the level of employment in an economy. a.…
A: The economies around the world tend to focus on their growth, and development through various…
Q: Suppose the economy is experiencing a recession with high unemployment. With a goal of increasing…
A: Recession When there is a general fall in economic activity, there is a recession, which is a…
Q: One of Friedman’ s criticisms of Keynes was Multiple Choice current consumption depends only on…
A: When understanding the nature and functioning of an economy, there are various theories developed by…
Q: According to Keynes, interest is a payment for
A: To find : Interest is a payment for
Q: According to Keynes, when the price level rises, it causes the interest rate to do what? It causes…
A: Money Demand: - The demand for money is the individual's desire to keep their assets in the form of…
Q: What stimulates a rise of employment according to Keynes? An increase of supply A decline of minimum…
A: Answer: In Keynesian theory a rise in employment results due to a rise in effective demand.
Q: Brief explanation on keynesian model and its diagram
A: Aggregate Demand: It refers to the total demand for goods and services in the economy within a given…
Q: According to a neoclassical perspective, in the long run, a surge in aggregate demand will most…
A: Equilibrium in the goods and services market occurs at the intersection of aggregate demand and…
Q: 35. According to Keynes, interest is a payment for A. O Consumer's preference B. Producer's…
A: To find : Interest is payment for.
Q: Fearing a recession, the government decides to give citizens a tax rebate to buy Christmas gifts.…
A: The government makes a decision according to the current market situation and future expectations.…
Q: Which of the following policies would Keynesian economists recommend to help lower the rate of…
A: Keynesian Economics suggests that there should be active government intervention to correct the…
Q: We call the model of income determination a Keynesian . What makes it Keynesian, as opposed to…
A: In economics, there are two popular school of thoughts: classical and Keynesian. The classical…
Q: Explain Keynes’s theory of investment and why it is central to his more general theory of output and…
A: Mistrust of the rationality of free-market decision making pervades the atmosphere. A book by…
Q: According to Keynesian business cycle theory, what should the government do in response to a…
A: A recession is a situation in which economic activities start to decline in the economy of a…
Q: Keynes believed that economies experiencing high unemployment should adopt policies to reduce the…
A: Keynesian theory came during the time of great depression in which he criticized the classical…
Q: the classical economists, if the quantity of money that people wanted to save was greater than the…
A: Answer to the question is as follows :
Q: did keynes believe that wages/prices were sticky in general-up and down? or just down?
A: Stickiness is a market situation in which a nominal price is resistant to change. Although it is…
Q: Explain the Keynesian, saving-consumption relationship, and interpret consumption and saving…
A: Keynesian consumption function gives the functional relationship between household consumption and…
Q: According to Keynes(Keynesian Macroeconomics), can the private sector always remove the economy from…
A: Keynesian school of economic thought contradicts the classical economic thought that economy always…
Q: According to Keynes, nominal wage increases mostly and directly lead to a inflationary development a…
A: Inflation: - Inflation is the phenomenon of an increase in the prices of goods and services in an…
Q: Why might a Keynesian Economist argue that a Federal Reserve policy alone will not get us out of a…
A: Recession explains the market situation when the whole country is facing a downturn in aggregate…
Q: Keynesian economists argue that facing an economic recession. and are the surest way to ensure full…
A: The economies around the world tend to depend upon the working of the government, and also the…
Q: Does the graph above reflect a Classical Model or a Keynesian Model? How do you know? What is…
A: The short-run is a time period in which wages and other input prices do not change in response to…
Q: In what words did the scholars criticize Keynes's approach?
A: Prof. Keynes established the definitional or accounting equality of savings and investment, it has…
Q: 'Keynesian policies to solve the problem of unemployment will not work because they will conflict…
A: Keynesian macroeconomics mentions, that the solution to a recession is on account of the…
Q: Which of the following is a Keynesian approach for dealing with a recession? a) Raise interest…
A: The Keynesian approach to dealing with a recession is expansionary fiscal policy. Expansionary…
Q: Write a word defense of either the Keynesian perspective or the Neoclassical perspective of…
A: Keynesian financial matters will in general view swelling as a value that may in some cases be paid…
Q: In the Keynesian Cross model, if government spending is raised by $100 million income must a. rise…
A: The expenditure-output model, often known as the Keynesian cross diagram, depicts how aggregate…
Q: What policy changes would Keynes recommend to counteract a recession?
A: There are various schools of economic thought. Each school has its own beliefs and principles. The…
Q: Who is John Maynard Keynes? What time period did he write? What did he believe about the market’s…
A: John Maynard Keynes was an English Economist who presented his ideas in the field of macroeconomics…
Q: Given the expected relationship between the real interest rate and investment, how would you explain…
A: Real interest rate: - The real interest rate is the inflation-adjusted interest rate. Real interest…
Q: What is the diference between a real interest rate and a nominal interest rate?What is the intuition…
A: An interest rate is a rate at which a borrower (the debtor) pays interest for the use of cash…
Q: Differentiate between the following terms. Assumptions in AD/AS models and assumptions in Keynesian…
A: Assumptions of the AD/AS model are: The market is self-regulated Prices of goods and services are…
Q: For Keynes involuntary unemployment existed only when the real wage was too high, but for Clower…
A: Keynes Involuntary unemployment has been one of the situation, that has lead to the workers ability…
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- OS consumer goods in terms of capital goods in Figure below?Tina walks into Ted’s sporting goods store and buys a punching bag for $100. That $100 payment counts as __________ for Tina and __________ for Ted. A) value added; multiple counting B) rents; profits C) expenditure; income D) income; expenditurehow to find gross investment in the economy? is it correct if i add Net investment to Capital Consumption? Gross Investment = Net investment + Capital Consumption
- Y7 Using the following question: "Is the value of the final goods determined by the factors of production OR does the value of the final Goods determine the value of the factors of production?" How were the Marginalists different than previous economists?Q1. Draw a circular flow diagrm. Identify the parts of model that corresponds to flow of goods and services and the flow of dollar for each of the following activites. Ahmed earns Rs 200 per houir working in a factory Ayesha spend Rs1500 for a pizza “Eat More” bakery pay Rs 2500 for the rent on its shop Maya purchases a new pair of earrings for Rs 250How do firms and individuals determine if it's worth it to (a) invest in capital improvements, (b) hire additional workers, or (c) decide where to work? pleae explain with simple examples that easy to understood i really appreciated
- Part A. In the circular flow diagram what do households do in the factor market, buy or sell? Part B. In the Factor Market do firms buy or sell?explain the difference between intermediate goods and final goods and give an example of each.Which of the following should NOT be considered as partof fixed investment?1. Toyota buys a new robot for its automobile assembly line.2. Apple computer builds a new factory.3. Exxon increases its holding of bonds and stocks infinancial markets.4. An accountant buys a newly built home for herself and her family.5. None of the above.
- An automobile manufacturer uses labor, capital, and a variety of intermediate goods in the production of cars. The car requires $4,000 of steel, $6,000 seats, $10,000 of electronics, $2,000 tires, $10,000 of labor, $5,000 of capital and has a 20% sales markup to consumers. a. What is the total value of intermediate goods? b. What are the total payments to factors of production? c. What is the total value of sales? d. What is the value of GDP from the sale of this car?In a circular flow diagram which one of the follwing transactions happens in the market for goods and services and which one in the market for factors of production? A.) Selena pays a storekeeper $2 for a quart of milk- D.) Salma earns $1000 dividend from the stocks she has-One day, chinedu the barber , Inc, collects D400 for haircuts.over this day , his equipment depreciates in value by D50 , of the remaining D350 , chinedu sends D30 to the government in sales tax, takes home D220 in wages and retains D100 in his business to add new equipment in the future. from the D220 that chinedu takes home, he pays D70 in income takes . Based on this computer chinedu's contribution to the following measure of income. 1) gross domestic product 2) net national product 3) national income 4) personal income 5) disposable income