Analyse Australia's economy in 2023 using the Mundell Fleming model and derive and draw the aggregate demand curve using the Mundell Fleming model and the aggregate supply curve using the neoclassical model of aggregate supply

What is market fundamentalism under the neoclassical counterrevolution?

Which of the following statements best describes the Neoclassical perspective? OWe should study events like the Great Depression and Great Recession to learn more about macroeconomics ORecessions are primarily caused by a decline in spending OFocusing on the changes in potential GDP is more useful than aggregate demand OSticky wages are the primary cause of recessions

Between 2007 and 2009, the United States experienced a severe financial crisis and economic downturn commonly known as the Great Recession. Starting in 2006, housing values fell 30%, causing losses in mortgage-backed securities for families and financial institutions. The recession was marked by a drop in aggregate demand that caused a decline in GDP and an increase in unemployment. Attached is an example of an aggregate demand and aggregate supply (AD/AS) model that illustrates the general trends of the U.S. economy during the Great Recession. How did the AD/AS equilibrium change over time? Support your claims by referring to your AD/AS model. Select an economic factor (GDP, unemployment, price level) and explain what impact any shifts in AD or AS (or both) had on your chosen factor. Please tailor the answer according the AD/AS model in layman's terms

Legislation proposes that the government should use macroeconomic policy to achieve an unemployment rate of zero percent, by increasing aggregate demand for as much and as long as necessary to accomplish this goal. From a neoclassical perspective, how will this policy affect output and the price level in the short run and in the long run? Sketch an aggregate demand/aggregate supply diagram to illustrate your answer.

On the graph, label your starting AD line as AD 2019.  Draw a new AD line showing the change to AD due to the pandemic. Label your starting SRAS line as SRAS 2019.  Draw a new SRAS line showing the change to supply due to the pandemic.Label the new short-run equilibrium RGDP and Price Level.   Does output (i.e. RGDP) increase or decrease in your model? Does the price level increase or decrease in your model? According to the AD-AS model when RGDP falls the unemployment rises and vice versa.  Does your graph indicate an increase or decrease in the unemployment rate

In Spring 2020, the U.S. economy once again found itself in an economic crisis, this time due to the COVID-19 pandemic. Which approach did the U.S. government follow in regards to the economy—Keynesian or Neoclassical?  Explain.

The neoclassical model of marriage focuses on productivity. This model says that there are gains from marriage that results from gains from trade (sharing production, specializing, etc.) List three OTHER gains from marriage (that are NOT associated with productivity advantages).

Contrast the Keynesian and neoclassical approaches to responding to a recession.  Assess how modern macroeconomists might blend elements of each perspective in their economic modeling.

What is the best approach to managing the economy, supply-side or demand-side economics? There are two schools of thought on how to managing the economy. The first is demand-side economics which also the Keynesian approach. This approach maintains that the demand for products and services drives the economy as such economic policies should focus on the aggregate demand curve.  The other approach is called supply-side economics or more popularly referred to as Reaganomics. In this trickle-down approach, it is postulated that the production of goods and services is what drives the economy with the focus on the aggregate supply curve.  Both fiscal and monetary policies have the potential to stimulate change in either the aggregated demand or the aggregate supply curves. In your initial post defend which approach should be used to (ensure to include in your subject line, which approach you are defending): Restore the economy that is in a recession. Identify the challenges that may be…