Macroeconomics
10th Edition
ISBN: 9780134896441
Author: ABEL, Andrew B., BERNANKE, Ben, CROUSHORE, Dean Darrell
Publisher: PEARSON
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Chapter 1, Problem 5AP
To determine
To comment: on the ideologies of the Classical and Keynesian schools of thought in relation to the government of the United States imposing tariffs on imported steel with the intention to protect local steel producers.
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explain why classical economists thought there was no inherent tendency in the market system to overproduction, recession and depression
Please answer the following question.Â
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Consider a classical economy described as follows:
? = ?^(1/2)?^(1/2) , where L is the amount of labor and K is the amount of capital. The economy has 10,000 units of labor and 10,000 units of capital.
Consumption (C): 5,020-100r, Investment (I) : 2,000-100r, Taxes (T): 2,500, Government Purchases (G) :3,000
Per the classical economists, if the quantity of money that people wanted to save was greater than the amount that people wanted to invest, the interest rate would fall. True or False
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