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 cost
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- Neoclassical perspective is a- re sisitation of classical econolics, which states that short run dynamica of the economy dissipate very quicly due to inflexible porices. b- revisitation of classical eonomics, which statets that long run fynamics of the economy dissipate slowlllly due to inflexibilyti prices d- re visitation of classical economics which states that short run dynamics of the economy dissipate very quickly due to felexible pricesDefine “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?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?
- 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.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?1) 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 ?
- Is Keynesian economics relevant in today's new normal? In what way? Explain...1. Supply and demand in the neoclassical economy Consider an economy in which the consumption, investment and production functions are as follows. C = 90 + 0.7(Y − T) I = 250 − 20r F(K, L) = AK0.5L0.5 The capital and labor supply are equal to 100 each, A=10, G = 200 and T = 200. Compute the equilibrium values of output, overall labor income, consumption, public savings, national savings, investment, and the interest rate. Suppose now government spending increases to G=300 (everything else stays the same). What happens to output, consumption, savings, investment and the interest rate? Compute the new values for these variables.Prompt We have been discussing major macroeconomic concepts like the ADAS Model and Fiscal Policy. This is an opportunity to apply that knowledge to a real-world scenario. Choose one of the following scenarios and identify whether it is an example of a recessionary economy or inflationary economy. Next, analyze possible Neoclassical solutions for it. Then, analyze possible Keynesian solutions for it. What would the impact on the economy be in the short-run? Long-run? Scenario 1: An increase in the unemployment rate to 7.4% has occurred. Inflation has increased causing a decline in consumer spending. Exports have declined by more than $4 billion. This has caused a decrease in GDP by 3.7%. Scenario 2: An increase in consumer and government spending has occurred. This has increased GDP by 4.4%. Currently, inflation rate has increased to 1.6%. Unemployment has remained at 5.5%. Scenario 3: An increase in the stock market by 26.5% has occurred. Companies are stockpiling the earnings…
- 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: ……………………………………………………………………………………………………………why did many government introduce "austerity" policies after the 2008/2009 financial crisis eventhough their economies were exhibiting recessionary GDP gaps and unemployment was high, and despite the fact that keynesian economics suggested that governments should do the opposite please help ASAP thankyou :D1. 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…