Neoclassical economics does NOT argue _______ Question 1 options: GDP is determined by supply factors such as resources and technology, not aggregate demand government regulation is generally good for the overall economy the market system has the self-adjusting mechanism that fixes unemployment and recession in the long run as long as wages, prices, and interest rates are flexible raising minimum wage generally creates unemployment

Q: 5

A: Keynes believes that the economy lies always below the full employment level of output. It means as…

Q: Summarize the Neoclassical model: A. The neoclassical model is built on the importance of aggregate…

A: Aggregate demand refers to the total demand for goods and services in an economy at any given time.…

Q: Which is/are correct? PLEASE EXPLAIN   A. Managerial economics is based on the Keynesians framework…

A: Administrative financial aspects is a part of financial matters including the use of monetary…

Q: Economics Assess the following statements whether are true or false? Justify your answer making…

A: The phrase "policymakers" refers to all the experts who are in responsible for preparing specific…

Q: Which of these is the key assumption of the Neoclassical school of economic thought? Question 13…

A: Neoclassical school of economic thoughts is the revision of classical thoughts in some sense with…

Q: Please explain the theoretical value of the parameter Alpha in other words what does the value of…

A: Potential returns of an investment is calculated using Capital Assets Pricing Model (CAPM). The…

Q: Price level 120 116 112 108 104 100 96 92 88 84 80 0 50 100 150 200 250 300 350 400 450 500 Real GDP…

A:

Q: Would it be plausible to claim that the theory of rational expectations is a distorted form of…

A: According to the hypothesis, people's current expectations for the economy have the power to…

Q: Macroeconomics: Regarding Neoclassical Economic Theory: Question: What interventions if any would a…

A: Neoclassical economics theory came into play in the twentieth-century, that is in the 1900. Its main…

Q: ...

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

Q: Most rms borrow money to use for investment. If these rms cannot get loans, they have to reduce…

A: The IS curve shows the different combinations of income and interest rate at which the equilibrium…

Q: In neoclassical economics, if there is unemployment, it means that:

A: Neoclassical believes in wage flexibility

Q: Problem 1 Suppose the system of aggregate expenditures can be described by the following…

A: Answer- Need to find- Type of unemployment present in the economy  Given in the question- C(Y-T)…

Q: Explain what is meant by ‘macroeconomics’ and why some economists think that it is different to…

A: Economics is the social science that learns how individuals and organizations allocate resources to…

Q: Define the neoclassical economic theory. List and explain it's main assumptions

A: Definition The neoclassical economic theory deals with the supply and demand model. It tells…

Q: Assume that the housing market is in equilibriIum in year 1. In year 2, the mortgage rate that banks…

A: As economies emerged, goods and services were produced that required machinery and labour. With time…

Q: Use the AD-AS framework to analyse the short run and long run effects on an economy when the…

A: The Aggregate Demand (AD) - Aggregate Supply (AS) explain the relationship between the total demand…

Q: Shocks to the Equilibrium 1. Complete the sentences: The equilibrium changes only if These demand…

A: When quantity demanded of a commodity equals quantity supplied, the market is said to be in…

Q: Assume that the economy is in a full employment equilibrium. There is an improvement in overall…

A: The economy is said to be at the full-employment level if it's all the factors of production are…

Q: Sales had been slow at Martha's Fresh Flowers for several months, but then business starting picking…

A: Business cycles are defined as the alternate periods of expansion and contraction in the business…

Q: business cycle theory

A: There are several schools of thought within economics, and they all have different ideas about how…

Q: According to neoclassical labor supply model, one reason why women have lower labor force…

A: The labor force in economics refers to the portion of the population that is either employed or…

Q: 13) The problem causing most recessions (according to Keynesian Theory) is too little A) money…

A: Recession refers to the condition in which economic activities in the economy are slowing down. In…

Q: Suppose the economy is experiencing an inflationary gap. In the long run, if there is no government…

A: An inflationary gap is said to exist in the economy when the actual gross domestic product (GDP)…

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: Assuming that an Entrepreneur knows the price of both these goods and both goods are produced, draw…

A: Cost effective optimum point is also known as cost minimization point. Where firm minimizes the cost…

Q: How do expectations about future economic conditions influence the speed of  adjustment? Are there…

A: Economic development refers to the process of improving the economic well-being and quality of life…

Q: An economist needs to predict the real wage rate, employment, output, real interest rate,…

A: The economist thinks that there is a temporary adverse supply shock. This implies a fall in the…

Q: Assignment 4 i. Differentiate between Aggregate Demand ( AD) Curve and Demand Curve (Micro…

A: The AD curve is the curve that shows a different level of output demanded by the economy at a…

Q: 3- one of the Assumptions of the classical model is 4- Money Illusion means john Maynard Keyrs…

A: Classical thoughts of school economist includes Adam Smith , J b say etc. Which believe on invisible…

Q: 1) On the graph below, indicate and label the “Keynesian" and “Neoclassical" zones of the Aggregate…

A: Keynesian aggregate supply curve is an upward sloping curve, because, in short run the wage rate and…

Q: When there is a shift in the aggregate demand (AD) curve in the neoclassical zone of the aggregate…

A: In AD-AS model, SRAS is divided in three zone:- 1) Keynesian zone:- This zone lies on far left on…

Q: Economic theorists expanded on the Keynesian aggregate supply model in the late 1940s, broadening it…

A: Aggregate Supply Curve:The aggregate supply curve represents the total quantity of goods and…

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: Which of the following is likely to occur if an increase in legal immigrants significantly reduces…

A: Aggregate supply refers to the total quantity of output that all the firms produce within a given…

Q: The economy enters a recession driving down the demand for homes nationwide.

A: When the economy slumps, the central bank's monetary policy relaxes, resulting in lower interest…

Q: How do automatic adjustment mechanisms operate to correct a deficit in the balance of payments under…

A: Budget Deficit: A budget deficit arises when there is excess expenditure against the revenues. Or…

Q: Match the policies below to whether they would be said by a Keynesian or Neoclassical economist: A.…

A: The focus of the policy implication is on how your results may have an impact on the present system…

Q: Which of the following statement is true?

A: Fluctuations are common and it create an interlinking consequences.

Q: Which of the following is consistent with the neoclassical theory of the labour?   Question 27…

A: According to the neoclassical model, the wage is determined by the marginal product on the demand…