Explain any two criticism of Keynesian theory

Q: What is the difference betw een the Keynesian model and the classical model when it comes to…

A: The Classical Model suggests that the economy is always at the full employment level of output,…

Q: Discuss how Keynesian economic can help a country facing an economic recession.

A: Monetary policy describes or portrays the actions taken by the monetary authority of the nation…

Q: Explain why in our New-Keynesian model, equilibrium out- put (Y) and employment (N) are…

A: According to New-Keynesian model, the equilibrium out- put (Y) and employment (N) are…

Q: In the Keynesian Cross model, AE = Y is known as the __________________________ _______________

A: Macroeconomics analyzes the economy as a whole. It studies aggregate economic concepts such as…

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: When the economy is in an inflationary gap, using relevant diagrams show whether the economy should…

A: There are different views regarding economic principles. Keynesian school of thought and the…

Q: List and describe the 4 new concepts in economics discovered by Keynes.

A: Keynesian economics theory was developed by the British economist John Maynard Keynes in the 1930s.…

Q: Explain the theory of the classical economists that flexible prices and wages ensure that the…

A: Classical model was based on several assumptions. The major result was that : “Given flex­ible wages…

Q: What is supply-sice or "trickle-down" economics? Why do Keynesians reject supply-side economics?…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Cite at least two (2) real life scenario based on the concept of Neo-Classical Theory. Give Emphasis…

A: A Neoclassical Economic Theory states that a product or service is valued above or below its…

Q: Why AD is never a constraint in the classical model?

A: Answer: The classical model assumes that supply creases its own demand (Say's law). So no matter how…

Q: What's a simple explanation of the Keynesian Economic Theory?

A: Keynesian economic science , body of ideas set forth by John Maynard economic expert.John Maynard…

Q: what is the impact of a contractionary policy on the U.S. economy from a new keynesian point of…

A: The Taylor rule is an interest rate projection model propounded by famous economist John Taylor in…

Q: true or false: "tax cuts directed at higher income individuals will do more to stimulate the…

A: According to Keynes, the economy will be an unstoppable machine operating at maximum capacity if…

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: What are the three well-structured paragraphs the basic principles of the New Keynesian Economics?

A: The field of economics that depicts a modern twist on the doctrine of macroeconomics evolving from…

Q: According to the Keynesian economists, who reject the self-regulating economy, how does the economy…

A: Before the Keynesian economics came into existence, there was a classical believe that economy is…

Q: Discuss the main differences between Keynesian school with those of the Neo-Classicists.

A: Macroeconomics is a part of economics that deals with production, decision and allocation concerning…

Q: Use the keynesian cross to predict the impact of:A.an increase in government purchase. B.an increase…

A: According to keynesian cross model,aggregate demand would depend on government purchase and taxes.

Q: Discuss how Classical Economists views and Keynesians’ views conflict each other regarding Say’s…

A: Economics study the behaviour of agents in the economy under the condition of scarcity and unlimited…

Q: ECONOMICS BACKGROUND/KEY TERMS/IDEOLOGY AND CONCEPTS/SIMILARITIES/DIFFERENCES i)Keynesian

A: Fiscal policy: - it is a tool of the government of a country in which the government adjusts its…

Q: what is the impact of a contractionary policy on the U.S. economy from a new keynesian point of…

A: Step 1: New Keynesian Economics provide macroeconomic foundation for the Keynesian economics. Unlike…

Q: Contrast Say’s Law from Keynes’ Law.  Give a rationale given by supporters of each perspective.  Are…

A: Macroeconomic study deals with the improvement of the overall economy. Over the last two centuries…

Q: In the 1930's, Keynes tried to a. support classical macroeconomic theory b. argue against classical…

A: In an economy, there are different schools of economic thoughts, such as classical, Keynesian,…

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: In the Neo-Classical macro model, a decrease in the money supply will O Decrease the price level,…

A: Answer is given below

Q: To say that solving the unemployment problem requires government intervention is consistent with the…

A: To combat inefficiencies, governments intervene in markets. Resources are correctly allocated to…

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

A: 1.2 The Hayek’s classical model illustrates the aggregate supply curve as a vertical straight line…

Q: Consider the Keynesian Consumption function: C = Co+ C1"(Y-T). Suppose that bad news about the…

A: When a consumer apprehends that in future the economy might be in bad state then he adopts the…

Q: Introducing Keynesian Economics" says that Keynes A: - wanted social revolution just like Marx -…

A: Classical economics developed around the 18th and 19th centuries. Classical economists believed in…

Q: In the last year there has been a significant increase in the inflation rate in Canada. Use the…

A: Introduction Transmission processes are indirect, according to Keynes. i.e., changes in the money…

Q: Using the simple keynesian model, Let Y = C + I +G (Closed Economy) C = 1000 + .6Y I= 800 G= 1000…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: rms (With example) - Keynesian

A: Keynesian economics are the various theories and models of macroeconomics of how inflation and…

Q: Contrast Say’s law with Keynes Law, do they provide completely different interpretations of…

A: Say and Keynes provide different interpretation of macroeconomic behavior. Keynes interpretation…

Q: The new Keynesian theory of the business cycle stresses intermporal substitution True False

A: In this question, ignore new classical economists who propose real business cycle theory.   On the…

Q: Friedman and Schwartz, Keynes, Hayek and Robins, Schumpeter, Hansen and Wilson, and Temin emphasize…

A: Answer -  According to Keynes the causes of Great depression are -Keynes argued that the major…

Q: According to Keynesian business cycle theory, if consumption and investment fall, what will happen…

A: According to Keynes, a fall in investment leads fall in income which leads to decreases consumption…

Q: Refer to the figure above. Based on the Keynesian cross diagram, short-run equilibrlum output…

A: Keynesian cross diagram also known as the expenditure output model shows the equilibrium level of…