What, according to Keynes, are the normal mechanisms for ensuring full- employment equilibrium given an increase in money demand? Discuss how each of them helps ensure full employment.

Complete the following table by filling in the blanks. (Hint: In the table, Q Real GDP and QN Natural Real GDP.)State of the Economy QQN QQNIs the Economy in a Recessionary Gap, Inflationary Gap, or Long- Run Equilibrium?Does Equilibrium, a Shortage, or a Surplus Exist in the Labor Market?Will Wages Fall, Rise, or Remain Unchanged?Will the SRAS Curve Shift Right, Left, or Remain Unchanged?Is the Economy Above, Below, or on Its Institutional PPF?QQN

How does the increase in interest rates raise the chances of a recession? How can we expect the increase in interest rates to affect the consumption of the poorest 20% and richest 20% of households?

Is ‘zero unemployment’ desirable? Explain Define the three ranges of the aggregate supply curve in the AD/AS framework.

50. Why is the Keynesian "Paradox of Thrift ” actually no paradox at all ?

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 this question, we assume Canada is a closed economy and is in its long-run equilibrium. TransCanada announced that they will not proceed with the East Energy pipeline in October 2017. According to the long-run classical model, what happens to the equilibrium levels of output, real interest rate, and investment in Canada after TransCanada made this announcement? What happens to the real wage in Canada? Explain your answer with the aid of TWOdiagrams - one for the loanable funds market and one for the labour market.

How is Keynes position different from classical position with respect to wages, prices, and Say’s law?.

Illustrate, using a Keynesian Cross diagram,  the meaning of the term  ‘animal spirits’.

What is the difference between an expansionary(inflationary gap) gap and contractionary(recessionary) gap?