Identify key assumption underlying Keynesian and Classical approaches to macroeconomic analysis. In your answer indentify how Keynesian and CLassical economist differ regarding understandign about the business cycle and how the economy should best be managed ?
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- Please no written by hand solutions Answer this question below? Explain the key features of major macroeconomic theories. Select and explain at least 3 macroeconomic variables. How would you get data on these variables and how are the variables useful for conducting macroeconomic analysis? Identify key macroeconomic policies for Fiji's economy as presented in the recent national budget. Identify the key risk factors to global economic growth. Explain how the above factors impact your local economy and your livelihood. Identify some response mechanisms that you could adopt to mitigate those risks. Explain how capital per capita determines income per person and consumption per person. Derive the interconnections. Define the steady state of an economy. What are the key features of macro variables in this state? Suppose a small island economy has less than the steady-state level of capital. Use the Solow model implications on the steady state to explain what will happen over time in this…a. Define “time inconsistency” of economic policy? b. i) Examine why policy makers might be tempted to renege on an announcement they madeearlier? ii) In this situation, what is the advantage of a policyrule?Explain the differences and similarities between Neoclassical Growth and New Keynesian models based on:1. Economic Actors2. Assumption of Market Type
- Define “time inconsistency” of economic policy? b) Examine why policy makers might be tempted to renege on an announcement they made earlier? In this situation, what is the advantage of a policy rule?b) What differences emerge between Keynesian and Classical economists regarding understanding the business cycle and how the economy should best be managed? c) Present an argument where you express support for either a Keynesian approach OR a Classical approach. You should make a case in arguing for only ONE of these two different approaches and use real-world example.Which one of the following statements is INCORRECT? A Keynesian economists believe that the business cycle is caused by external factors, such as governmentinterference in the economy.B Classical economists believe that market economies are inherently stable and fluctuations are ascribed toexogenous factors.C Classical economists believe that government should not intervene in the economy to try to smooth out thebusiness cycle.D Structuralist economists believe that the market system is neither inherently stable norsystematically unstable . Consider the case of two countries, Afghanistan and the US, both producing carpets and fighter aircraft.The table below shows output rates per day in the two countries if all resources are fully and efficientlyemployed. Use this information to answer the question.Carpets Fighter aircraftAfghanistan 100 4US 500 25An appropriate international exchange ratio that would allow mutually advantageous trade to takeplace would be: A 1 aircraft = 25 carpets.B…
- ASAP Regardless of many assumptions, an equilibrium business-cycle model can go a long way in matching actual economic fluctuations for many macroeconomic variables. Please write down examples and explain its possible reasonings?Question 4Why the classical economists failed to explain the reason of the great depression? What did the Keynesian economists put forward in reponse to that event?Discuss the main contributions of 1 economist that influenced by John Maynard Keynes (Keynesianism, Post-Keynesianism, Neo/New-Keynesianism, New Classical) to economic thought. Why do you think his/her economic ideas are important, according to your own perspective?
- Write a word defense of either the Keynesian perspective or the Neoclassical perspective of economics. Which worldview makes the most sense? You are encouraged to relate your explanation to specific examples, politics, the fashion industry, your own life, etc.Which of these economic problems is not associated with the study of macroeconomics? a. How to increase employment rate? b. How to influence aggregate demand through taxation? c. How to predict the demand for medicines? d. How to get out from economic recession?Question1.A.write the short nots under each statement: 2. Most national government economic are facing to many issues in macroeconomic prospective: objectives: …………………………………………………………………………………………………………………………………………………………………………………………………… 3. The main differences between withdrawals and injection in macroeconomics are: ……………………………………………………………………………………………………………