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- Explain different approaches – Neo Keynesian, Friedman, and Lucas – of Philips curve in the short – run and
Phillips curve in the long – run
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- Explain the different approaches of Neo Keynesian and Friedman on Philips curve in the short run and Phillips curve in the long run.Discuss what the long-run Phillips curve looks like in the neoclassical perspective, and why the trade-off between inflation and unemployment disappears. From this perspective, what is the best government policy response to favorable economic conditions in the long run?In what period did the Samuelson-Solow U.S. short-run Phillips curve you've just explored most closely match the data? A. 1930s B. 2000s C. 1960s D. 1940s Screenshot attached thanks!
- The Keynesian Side of economics focuses on explaining why recessions and depressions occur, as well as offering a _______ for a minimizing their affect a.  pricing strategy b. Policy prescription c. Macroeconomic model d. Set of menu costThe period from the late 1990s to the winter of 2000 was marked by falling unemployment rates and falling inflation rates as well. How does economic theory explain this apparent violation of the Phillips curve model?Under the assumption of anticipated shocks, can policymakers exploit the Phillips curve relationship in the short-run? In the long run?
- According to macroeconomic theory, evidence that high unemployment may be accompanied by low inflation, and low unemployment may be accompanied by high inflation is supported by the: a) Keynesian cross diagram. b) Keynesian Inflation trade-off model. c) Keynesian Phillips curve tradeoff. d) neoclassical expenditure-output model.. Explain how the original Phillips curve was transformed into the expectations augmented Phillips curve. Using the latter, describe why any expansionary policy would not be effective in the long run and move the macro-economy back to the Natural Rate of Unemployment (NRU).Analyze the implications of the New Keynesian Approach for rational Expectations. State your assumptions very well.
- The idea that the long-run Phillips curve is a. vertical stems from the analysis of Samuelson and Solow. b. vertical stems from the analysis of Friedman and Phelps. c. vertical was disproved by the experiment that monetary and fiscal policymakers inadvertently created in the 1970s. d. downward-sloping can be correct if unemployment responds very quickly to unexpected inflation.Which of the following are business cycle theories that regard fluctuations in aggregate demand as the factor that is creating business cycles? I) Keynesian cycle theory II) Real business cycle theory III) Monetarist cycle theory Select one: (a) I, II and III (b) I and II (c) I and III (d) I onlyDraw a short run Phillips curve and show the slope of the curve and then explain what it implies for the policy makers? Can policymakers exploit the Phillips curve relationship by trading more inflation for less unemployment in the short-run? In the long run? Explain both the Monetarist (Classical) and Keynesian points of view.
