Would it make sense to argue that rational expectations economics is an extreme version of neoclassical economics? Explain.

Q: Explain neoclassical theory of distribution.

A:

Q: According to neoclassical theory, compensating consumers for inflation as measured by a base year…

A: Neoclassical theory provides information of about various economic concepts such as consumer…

Q: Review the neoclassical model's basic microeconomic presumptions regarding customer behavior.

A: Neoclassical model: This term refers to a model in which supply and demand is used to account for…

Q: Explain the term “Rational Expectations” as Thaler used in the first chapter of Misbehaving.

A: "Rational expectations" are model-consistent expectations in economics, in which agents within the…

Q: Which of these is the key assumption of the Neoclassical school of economic thought? Question 13…

A: Neoclassical school of economic thoughts is the revision of classical thoughts in some sense with…

Q: Why do neoclassical economists tend to put relatively more emphasis on long-term growth than on…

A: The Neoclassical economists were influenced by the policies and rules of the classical economists…

Q: Would it be plausible to claim that the theory of rational expectations is a distorted form of…

A: According to the hypothesis, people's current expectations for the economy have the power to…

Q: If most people have rational expectations, how long will recession last ? Explain.

A: The recession is an economic phenomena and phase where the price tends to decline and all the…

Q: How are Milton Friedman’s theories a critique/response to Keynes’ theories?

A: Milton Friedman advocated for a free market economy with minimal government intervention.Friedman,…

Q: Define the neoclassical economic theory. List and explain it's main assumptions

A: Definition The neoclassical economic theory deals with the supply and demand model. It tells…

Q: In your view, is the economy currently operating in the Keynesian, intermediate or neoclassical…

A: From the Keynesian point of view, the aggregate demand is not equal to aggregate supply due to…

Q: True or False? In an assigned reading, Milton Friedman indicated that he agreed with John Maynard…

A: Answer - "Thank you for submitting the questions.But, we are authorized to solve one question at a…

Q: Identify and briefly explain the neoclassical argument and the key building blocks of neoclassical…

A: The Classical thought of economics is based on the invisible hand concept of AdamSmith. As per the…

Q: What is Expectations hypothesis?

A: In economics, expectations hypothesis is one of the economic hypothesis used to determine or…

Q: Rational vs Adaptive Expectations. How are they both different from the assumption we have used up…

A: Rational expectation basically refers to an economic theory that states that investors make…

Q: The condition for profit maximisation in the neoclassical model of the firm is: a. Marginal revenue…

A: Neoclassical microeconomics ensures that firms are aimed to maximise profits.

Q: A problem with money models is that in fact there is more than one kind of money; economists do not…

A: Commercial money, fiduciary money, fiat money, and commodity money are the four categories of money…

Q: Explain how each of the following events or policies will affect unemployment in a neoclassical…

A: The Neoclassical economy is abroad theory that concentrates on the role of supply and demand in…

Q: What is the shape of the neoclassical long-run Phillips curve? What assumptions do economists make…

A: The original Philips curve explains the relationship between the inflation rate and unemployment…

Q: Neoclassical economics does not provide an adequate conceptual framework for the analysis and…

A: Neoclassical economics is a broad approach that attempts to explain the production, pricing,…

Q: difference between rational expectations and adaptive expectations?

A: Economics refers to the study of allocation of scarce resources in the most optimal way, when the…

Q: Explain how Friedmanian approach is different from the New Classical theory?

A: The broad theory of neoclassical economics focuses on supply and demand as the driving forces behind…

Q: How does forecast accuracy relate, in general, to the practical application of the aggregate…

A: According to the trend, the forecast accuracy is the one which based on a better planning. This is…

Q: Summarize the main implications of the neoclassical consumption model forconsumption and saving.

A: The neoclassical model of consumption is based on the assumption that consumers derive their utility…

Q: Suppose you flipped an honest coin ten times and heads came up eight times. You are about to toss…

A: Rational expectation refers to creating expectations with the help of all the available information…

Q: Explain how Friedman included expectations in his macroeconomic theory, as well as his theory on the…

A: Macroeconomic theory: Macroeconomics is worried about the comprehension of the total peculiarities…

Q: Which perspective is better suited to handling the recession that was caused by the pandemic?…

A: When talking about different schools of economics, it can be said that the relevance of the theory…

Q: Does neoclassical economics focus on the long term or the short term? Explain your answer.

A: The perspective of neoclassical economics states that during the long run, the economy would adjust…

Q: What are the principal differences between the Neoclassical and Keynesian approaches with examples

A: Neoclassical and Keynesian approaches provide varied Macroeconomic interpretations. The…

Q: What is meant by the term neoclassical counterrevolution? What are its principal arguments, and how…

A: Neoclassical economists believed that a consumer’s first and foremost concern should to maximize his…

Q: Evaluate the validity of the following claim and justify your answer: “The First Welfare Theorem…

A: In an economy, welfare theorems are the macroeconomic analysis of the overall economic condition and…

Q: What is the best approach to managing the economy, supply-side or demand-side economics? There are…

A: Recession: A recession is a macroeconomic term that alludes to a critical decrease in everyday…

Q: Do neoclassical economists tend to focus more on long term economic growth or on recessions? Explain…

A: All economic factors, such as demand, savings, costs, and investment, are beginning to decrease in…

Q: Does neoclassical economics view prices and wages as sticky or flexible? Why?

A: Neoclassical economics is a school of thought that is associated with the names of economists such…

Q: A neoclassical economist and a Keynesian economist are studying the economy of Vineland. It appears…

A: Keynesian economists believe that there is nothing like invisible hand theory. It means that many…

Q: According to the neoclassical model, when the Federal Reserve implements expansionary monetary…

A: An expansionary monetary policy leads to an increase in the money supply or lower interest rates.…

Q: (a) Discuss the basic distinction and similarities between neoclassical Macroeconomist and…

A: Economics is the branch of study that deals with the production and distribution of goods and…

Q: Can you explain rational expectations in detail and elaborate Keynesian and Chicago points of views…

A: Rational Expectations was first introduced by John F. Muth. Rational Expectations is an economic…

Q: According to you what is the difference between Ricardian Model and the HeckscherOhlin (HO) model?

A: The Ricardian model and Heckscher Ohlin model are two models that explain the theory of comparative…