Why the classical economists failed to explain the reason of the great depression? What did the Keynesian economists put forward in reponse to that event?

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Q: a. How did Milton Friedman alter the consensus that had developed in the aftermath of the Great…

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Q: How did the Keynesian perspective address the economic market failure of the Great Depression?

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Q: c. d. A key question in macroeconomics is why the economy experiences business cycle fluctuati…

A: The ups and downs in the economy of the country is a result of business cycle.

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Q: oes it make sense that wages would be sticky downwards but not upwards? Why or why not?

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Q: 1) How did the Keynesian perspective address the economic market failure of the Great Depression?

A: British economist John Maynard Keynes changed economic theory by proposing alternatives to the…

Q: 5: The Keynesian model is based on different assumptions compaired with the neoclassic idea. a) What…

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Q: 18. Keynesian Economics: a. supports the theory that deficit spending can be used to stimulate the…

A: 18. Keynesian Economics is a macroeconomic theory, which is advocated that the government deficit…

Q: a. Define “time inconsistency” of economic policy

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Q: QUESTION 2 (а) Explain why high inflation rate and recession do not normally happen at the same…

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A: Since one or more regulatory bodies in most countries must authorize government spending or new tax…

Q: a.Given what you have learned about the U.S. Business cycle over the past 60 years, please explain 4…

A: Hey, Thank you for the question. According to our policy we can only answer 1 question per session…

Q: 4. Which one of the following statements is INCORRECT?  A Keynesian economists believe that the…

A: Business cycle refers to the situation where the fluctuations in economic activity. Economic…

Q: Do supporters of the Keynesian perspective generally prescribe a hands-off approach to managing the…

A: Supporters of keynesian economics believe in go ernments role and its intervention for managing the…

Q: Who favors Milton Friedman’s theories currently and how are they applied?

A: Answer-

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A: New classical macroeconomics, often known as new classical economics, is a school of macroeconomic…

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Q: Year Actual Output Yt Potential Output Yt Yt - Yt Short-run Output Y 2018 2019 2020 20 20.25 22.50…

A: Long-run equilibrium occurs when real GDP is equal to potential GDP.

Q: assuming, in a country. the unemployment rate was 15%, And the inflation rate was 17% Ánd the GDP…

A: 1)With single policy,this goal would be achieved. Because only growth rate needs to be increased to…

Q: n Spring 2020, the U.S. economy once again found itself in an economic crisis, this time due to the…

A: US Government should follow the Keynesian approach. It is because covid 19 has created the situation…

Q: 4. Consider the macroeconomic balance sheets of the following economies. As policy analyst what…

A: (a) Country A has following characterized High GDP growth rateHigh inflation rateHigh equity market…

Q: Question 1 The economy Is at full emplayment when. Athere are more unemplayedbtworkers than vacancC.…

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Q: c.Explain in detail, 4 possible causes of change in the direction of the business cycle. You are…

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Q: b) What differences emerge between Keynesian and Classical economists regarding understanding the…

A: The classical school of thought proposed the theory of market economies which viewed a free market…

Q: Q5 (a) Explain FOUR (4) factors that will shift the aggregate demand curve. Define business cycle.…

A: The economies around the world tend to focus on their growth, and development, so that their…

Q: [18] Which of A-C is a true statement? A. Without fear of contradiction it can be said that FDR’s…

A: Great Depression: It refers to a situation under which the whole economies faced economic depression…