In the simplest (or introductory) form of the Keynesian model, which of the following decisions can we analyse? A. Interest rate fluctuations. B. Saving of households. C. Investment by government. D. Foreign investment by firms. E. Wage levels in firms.
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In the simplest (or introductory) form of the Keynesian model, which of the following decisions can we analyse?
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- 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.1. Which of the following is not an assumption of the simple Keynesian model ? (a). We are in the short -run (b).Prices are constant (c).Output is demand -determine (d). Output is supply -determine (e). Aggregate output equals planned expenditure. 2. Which of the following is not one of the principal economic goals for the economy ? (a). Economic growth (b).Stable prizes (c). Strong national defense (d). Full employment (e). A strong cedi 3. Which is not a cause for business cycles considered by macroeconomists. (a). Greed (b) variations in optimism (c) shocks to money supply (d) shocks to technological ability 4. Which of the following question is of most interest for macroeconomics. (a). Why do foreigners immigrate to Ghana. (b).What is the appropriate stance of antitrust policy (c)Why is there inflation (d). What does the steel industry wants to tariffs 5. Which of the following statement is true ? (a). Final goods as produce in the same year as the related final good…If a Keynesian model shows that aggregate demand for both goods and labor has shifted to the left, while wages are sticky and remain at the same level and prices remain at the same prices, what will be the result in the labor market? a a shortage of labor b depression c coordinated wage reductions d a surplus of labor
- In the basic New Keynesian model. suppose that the anticipated future rate of inflation goes up due to a future increase in energy prices. Determine the effects and explainConsider a one-period model like the one considered in class. There are three states. At the beginning, everyone is unemployed. In the second stage, individuals search for a job. Suppose that the probability of finding a job is 0.5. in the third stage, individuals who found a job will work, while those who did not find a job remain unemployed. Each job pays wage w=10. If a person does not find a job he/she will collect unemployment benefits b=4. a)What is the expected income at the beginning of the economy (i.e. before the job search)?Is Keynesian economics relevant in today's new normal? In what way? Explain...
- Summarize the Keynesian and Neoclassical models.Economists from all theoretical persuasions criticized the American Recovery and Reinvestment Act. The Stimulus Package was arguably a Keynesian measure so why would a Keynesian economist be critical of it? Why would neoclassical economists be critical?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.