Moving to another question will save this response.Quèstion 2The Keynesian Theory makes the following assumption except (lo La) one. It is:O Supply creates its own demand.O Aggregate demand is the main determinant of the level of economic activity.O Prices and wages are flexible in the upward direction orO Investment is not sensitive to changes in the interest rate.Moving to another question will save this response.clasical theory 1 (3).pptxclasical theory 1 (1).pptxproductio

Keynesian's theory is the most important theory of macroeconomics. It challenges classical view.

ynesian Theory makes the following assumption except ( La) pply creates its own demand. gregate demand is the main determinant of the level of econom ces and wages are flexible in the upward direction or estment is not sensitive to changes in the interest rate. ving to another question will save this response.

ynesian Theory makes the following assumption except ( La) pply creates its own demand. gregate demand is the main determinant of the level of econom ces and wages are flexible in the upward direction or estment is not sensitive to changes in the interest rate. ving to another question will save this response.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter16: Monetary Policy

Section16.A: Policy Disputes Using The Self Correcting Aggregate Demand And Supply Model

Problem 3SQP

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It is known that the aggregative economic variables are as follows: Cash demand for speculation : L2 = 100 - 400r The amount of money in circulation = 200 Money demand for transactions and in case: L1 = 0.2Y Savings : S = -110 + 0.2Yd Investment: I = 150 - 600r Tax Tx = 12.5 + 0.25Y Government Expenditure: G = 160 Question : a. calculate the interest rate and national income at the time of general equilibrium? b. How much money is demand for speculation? c. What is the investment volume on balance?
QUESTION 22 Which of the following is not true? OA. The extreme new classical aggregate supply curve is vertical. B. The extreme Keynesian aggregate supply curve is horizontal. OC. The extreme supply-side case has tax cuts shifting the aggregate supply curve leftward. D. The neoclassical synthesis has short-run upwards sloping aggregate supply curves and vertical long run aggregate supply curves. O E. The extreme Keynesian case has tax cuts shifting aggregate demand only. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
Assume that the real wage in an economy is held above equilibrium.a. Graphically illustrate how an increase in technology that raises the demand for labor willchange the number of unemployed workers. Be sure to label the axes and the quantities oflabor hired before and after the technological progress.b. Explain in words what happens to the number of unemployed as a result of this change.a. The number of unemployed falls from (L – L1) to (L – L2).
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