How is Keynes position different from classical position with respect to wages, prices, and Say’s law?.

Q: Explain any two criticism of Keynesian theory

A: According to the given question a Keynesian theory is basically a theory which refers to the total…

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: What was Keynes’s solution to the Depression?

A: Keynesian economics was first highlighted during the Great Depression because it was considered as…

Q: Based on what you know about events in Europe after World War I, why does Keynes say the social and…

A: England was having more government and democratic system than other european countries after world…

Q: In both the classical and Keynesian model, the interest rate falls in a recession. O True O False

A: The amount being due per period being as a proportion of the amount that is either being deposited,…

Q: Keynes’ contribution to economics included a new focus on which of the following:   Group of…

A: Keynesian economics is all about explaining why recessions and depressions occur in an economy and…

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: According to Keynes, interest is a payment for

A: To find : Interest is a payment for

Q: What was the most “nicompoopish” belief that Keynes ridiculed?

A: The J M Keynes is known as the father of Macroeconomics.  He is the biggest critique of classical…

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: Is Say’s Law or Keynes’s Law a better macroeconomic perspective for our economy ? Explain.

A: Macroeconomics is the division of economics that talks about the economy as a whole. In this, the…

Q: What were John Maynard Keynes views of the causes of recessions and solutions to fixing them?

A: A recession is a situation of economic contraction, where businesses experience low demand and there…

Q: What is the classical economics position on (a) wages, (b)prices, and (c) interest rates?

A: Meaning of Classical Economics: The term classical economics focuses on economical growth with…

Q: Explain Various Assumptions of Classical Macro Economics Theory.

A: Classical Economist is that economist who had a view that prices are completely flexible, this tells…

Q: In the Keynesian framework, which of the following events might cause recession/inflation. Explain…

A: When the aggregate demand for the country's goods and services rises, the price level and output in…

Q: Explain and show in detail whether the following sentence is correct or incorrect: "For Keynes, the…

A: During a downturn of the economy, sticky prices and wages would tend to be sticky which could in…

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: 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: 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: What is the effect of a termpoary increase in productivity in the Keynesian model, with sticky…

A: The sticky wage model is an economic framework that explains how wages adapt slowly to shifts in the…

Q: Keynes viewed consumption as an activity based on psychology. Discuss how the work of David Laibson…

A: Psychology-Law of Keynes: According to his view when income increases then the consumption level…

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: How would the level of aggregate demand be affected by a rise in the interest rate in the Keynesian…

A: If the level of interest rate rises,then aggregate demand would decrease.

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: 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: Suppose that the public’s taste changes in such a way that leisure comes to be more desirable than…

A: Taste: When desire, emotions, or preference of consumers change in favor of a product due to which…

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: using the Keynesian AD-AS diagram how can the economy  be in a state of equilibrium at any level of…

A: The equilibrium is an economic state  where Aggregate Demand (AD) intersects Aggregate Supply (AS)…

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: Which of the following is a belief of classical theory? A. Long-run full employment B. Inflexible…

A: Macroeconomics is a part of economics that explains economic behavior as a whole. It discusses the…

Q: a) Distinguish between the classical and the Keynesian aggregate supply curve

A: Aggregate supply curve: it shows the relationship between the amount of output supplied by firms at…

Q: Task of the modern economics: What is the difference between Keynesian theory of economics and the…

A: Answer: Classical and Keynesian theories are not the same.From a theoretical approach, there are…

Q: What would the LM curve look like in a classical world? If this really were the LM curve that  we…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

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: According to Keynesian business cycle theory, what should the government do in response to a…

A: The business cycle refers to the continuous ups and downs in the level of economic activity that…

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: What is the shape of the keynesian consumption function with diagram?

A:

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: 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…