Explain why the neoclassical economists believethat the government does not need to do much aboutunemployment. Do you agree or disagree? Explain.

Q: Explain neoclassical theory of distribution.

A:

Q: 9. What is an assumption of a Neoclassical model? a. The future is uncertain b. Output increases…

A: Supply and demand are used to describe the production, price, consumption, and income distribution…

Q: O Discuss the Neoclassical theory of distribution and show its strengths and weakness.

A: In neoclassical theory, demand and supply simultaneously determine the quantity and factor prices.

Q: ...

A: In an economy, the applicability of different schools of economic thoughts depends.upon the economic…

Q: Explain the neoclassical counterrevolution. In your answer: • Discuss the concept of a ‘market…

A: Neo Classical Counterrevolution is regarded as a development theory in economics that was adopted in…

Q: H0w d0es price stickiness phen0men0n lead t0 an increase in the sh0rt run level 0f 0utput acc0rding…

A: Price stickiness is the resistance of price to change. Price will remain same,irrespective of…

Q: Is Keynesian economics relevant in today's new normal? In what way? Explain.

A: According to Keynesian economics economic output is influenced by aggregate demand in short run. It…

Q: What is the role of daynamic in macroeconomic? What are the diffrence between static and daynamic?

A: Macroeconomic refers to the branch of economics that provides information about the overall…

Q: Price level LRAS (GDP deflator, 2000 - 100) SRAS Real GDP (trillions of 2000 dollars) In the figure…

A: A No action is needed as wages would go down and shift AS curve to the left   Classical economic…

Q: Consider the basic neoclassical model. Assume a reduction in At. In which direction do prices move?…

A: A decline in At will cause production to fall and will increase the real interest rate. A higher…

Q: List and describe the 4 new concepts in economics discovered by Keynes.

A: Keynesian economics theory was developed by the British economist John Maynard Keynes in the 1930s.…

Q: What is supply-sice or "trickle-down" economics? Why do Keynesians reject supply-side economics?…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

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

A: Wage is an installment typically finished by a business to a worker for administrations presented by…

Q: Consider the basic neoclassical model. Suppose there is an increase in At. Draw 2 versions of the…

A: The neo-classical theory focuses on the demand and supply as the force that is driving the…

Q: From a neoclassical view, which of the following is least important? Select one: a. improving the…

A: Answer: Correct option: (a) Explanation: Improving the corporate portfolio is the least important…

Q: What's a simple explanation of the Keynesian Economic Theory?

A: Keynesian economic science , body of ideas set forth by John Maynard economic expert.John Maynard…

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: Compare and contrast the use of government spending changes versus tax changes as a means of…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Price level (GDP deflator, 2000 - 100) LRAS SRAS Real GDP (ilions of 2000 dollars) In the figure…

A: In an economy, classical economics suggest that the market will make self-correction in the…

Q: If you were a Keynesian economist and the economy was sick, your advice to the economy would be:…

A: Keynes was an economist who firmly believed in certain principles. His views on economic concepts…

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: In the neoclassical model, low inflation is good because Select the correct answer below: O it…

A: The neo-classical model revolves around the concepts of market demand and supply and believes that…

Q: 2. Reason for inflation according to Neoclassical

A: At full employment only the increase in money supply can cause the inflation to rise

Q: What is the Keynesian and Neoclassical models

A: The Keynesian and Neoclassical models are two economic models with different points of view…

Q: Review the fundamental microeconomic assumptions on the consumers’ behaviour within the neoclassical…

A: Neo classical model: It refers to the model under which the production, consumption, and pricing…

Q: Typically, when will the National Bureau of Economic Research​ (NBER) announce that the economy is…

A: Recession is a situation in the economy when there is a general decline in economic activity. For…

Q: What, using examples, are the main contrasts between the Keynesian and Neoclassical approaches?

A: Numerous macroeconomic views are offered by neoclassical and Keynesian perspectives. Contrary to…

Q: Legislation proposes that the government should use macroeconomic policy to achieve an unemployment…

A: As per the neoclassical view of unemployment,it tends to focus less on the problem of cyclical…

Q: came into prominence in 1916 througl the writings of A. J.M.Keynes B. L.E.Von Miser C. Gustav Cassel…

A: According to the given question The purchasing power parity theory is considered as an theory in…

Q: A country experiences a recession. What is the most likely policy response from the Neoclassical…

A: The contraction of the business cycle when there is a decline in the activity of the economy is…

Q: Prompt We have been discussing major macroeconomic concepts like the ADAS Model and Fiscal Policy.…

A: A recessionary economy is defined as a significant decrease in overall economic activity in a…

Q: What is the central economic proplem?

A: Economics is the branch of social science that studies the production, consumption, and distribution…

Q: You're a staffer working for Senator Joe King, a diehard opponent of minimum wages. The Senator…

A: Cost to the society is defined as the welfare loss which is given by the loss of consumers and some…

Q: Now think about a major recession, like the one that occurred in 1982. (Hint: a major recession…

A: A recession is caused when the economy is operating below the potential output level. It is a…

Q: why did many government introduce "austerity" policies after the 2008/2009 financial crisis…

A: "Austerity" policies constitute of a set of decisions that plays around the budget deficit. Under…

Q: How to transform AR model into the ADF model?

A: In econometrics, a statistical model is said to be Autoregressive if it predicts the future values…

Q: Suppose that the economy is characterized by the following behavioural equations:

A: Given,  C=800+0.8(Y-T)where, C is consumption Y is output and T is taxesI= 150+0.1Y-1000iwhere, I is…

Q: Contrast Say’s law with Keynes Law, do they provide completely different interpretations of…

A: Say and Keynes provide different interpretation of macroeconomic behavior. Keynes interpretation…

Q: Explain the difference between Keynesian economics and Classical economics by mentioning the…

A: Note: Since you have posted multiple independent questions in the same request, we will solve the…

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…