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as per Lord keynes views ----- indicates the real optimumof employment in economy
- yl
- AD
- AS
- E
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- An economic theory regarding the effect of an economic variable on another when all other factors stay constant is called _____. laissez faire Keynesian e pluribus unum Ceteris ParibusThe steeper portion of the SRAS curve best illustrates the effects of economy is O Keynesian: very strong O Keynesian; very weak O classical; very weak O classical; very strong analysis and is MOST likely to occur when theSuppose an economy's production is defined by the following neoclassical production function: Y=3K1/3L2/3. Derive the labor demand equation by expressing labor, L, as a function of the real wage, w=W/P Don't answer by pen paper and don't use chatgpt otherwise we will give dounvote
- Let's say that Americans decide that home ownership isn't worth it anymore; instead, they all just move in with their parents. If Americans quit buying homes, this will cause AS to shift leftward due to a drop in consumption AS to shift leftward due to a drop in economic investment AD to shift leftward due to a drop in consumption AD to shift leftward due to a drop in economic investment is a venent policy ait illaue by a computer. Ine interest rate, amount to buy or sell in open market operations, etc., are all determined by an equation put into the computer. This approach is not supported by any American economists based on discretion O called rule-based policy described by all listed optionsConsider a one-period economy which experiences the destruction of some of the nation’s capital stock (say through a hurricane is de- stroyed). How should this effect equilibrium, consumption, output and labor supply? Now, let’s say the government tries to offset some of the declines in capital on output and hours worked by increasing govern- ment spending. What is the likely outcome of this policy intervention in terms of consumption? In our model, the affects of changes on wages are ambiguous because the income and substitution effects move in opposite directions. How do (many) macroeconomists deal with this ambiguity in terms of study- ing business cycle? How do economists resolve this ambiguity when studying long term economic development? Consider an economy with a straight line PPF. Show how an increase in government spending paid for by an increase in lump sum labor taxes affects outcomes. Do the same for an increase in government spending financed by a proportional income…In January 2017, the National Retail Federation reported that "Holiday retail sales during November and December increased 4 percent over 2015 to $658.3 billion." The NRF's chief economist "noted that average hourly earnings were up in 2016 over 2015 ... home values have also increased and the rising stock market has increased the value of consumers' investments." Which models of consumption behavior was the economist referring to? O Keynesian consumption model and precautionary savings model. O Keynesian consumption model and Modigliani's life cycle model. O Inventory cycle model and Modigliani's life cycle model. O Precautionary savings model and Friedman's. permanent income model
- The neoclassical consumption model, a retirement perspective: Consider thespecial case solved in the text where ! = 1 and utility takes the log form.Suppose the real interest rate is 5 percent. Let’s give this consumer a fnancial profle that might look like that of a middle-aged college professor contem-plating retirement: initial assets are ftoday = $50,000, and the path for labor income is ytoday = $100,000 and yfuture = $10,000.(a) What is the individual’s human wealth? Total wealth?State the main properties of keynesian consumption function i need three properties.Will the shift of SRAS to the right tend to make theequilibriumquantityandpricelevelhigherorlower? What about a shift of SRAS to the left?
- The following graph represents an economy. Initially, they produced an aggregate output of $6,000 until they decreased consumption by $500. If price levels did not change, output would have fallen to $5,100. However, prices decreased because of the decrease in consumption, so output only fell to $5,400. Aggregat e Price SRAS 100 97 ADo AD Aggregat 5,10 5.40 6,00 e Outout a. Calculate the simple Keynesian multiplier if the price levels had not changed. Round the answer to the nearest two decimal points. b. Calculate the actual spending multiplier after the prices decreased. Round the answer to the nearest two decimal points.What impact would a decrease in the size of the labor force have on GDP and the puce level according to the AD/AS model?Does Says law apply more accurately in the long run or the short run? What about Keynes law?