From a Keynesian point of view, which is more likely to cause a recession: aggregate demand or aggregate supply, and why?

In a Keynesian economy, please show and explain how would reducing marginal tax rates affect income and price levels in the name of AD-AS model.

What is the Keynesian and Neoclassical models.

what is the impact of a contractionary policy on the U.S. economy from a new keynesian point of view? Show the impact using a graph.

In the AS/AD model, what are the main differences between the neoclassical perspective and the Keynesian perspective?

According to Keynesian economists, if people in the economy are not spending enough then the __________ should step in to fill the gap. a federal reserve b markets c federal government d banks

If a 25 percentage change in price generates a 25 percentage decrease in the quantity demanded, then the demand for that product is ___________     elastic     unit elastic     perfectly elastic     inelastic

Consider an economy currently in recession. Which is NOT a policy move that could assist the economy, as discussed in class? Raising the money supply Raising government spending Lowering bank reserves Lowering interest rates

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.

Only Keynesian economics argues for active macroeconomic policy.    True  False