What are some limitations of the Classical Theory that Keynesian Theory learnt from and tried to fix?

Q: In the Keynesian model (that is, the short run), what causes recessions?

A: The objective of the question is to understand the causes of recessions in the context of the…

Q: Explain any two criticism of Keynesian theory

A: According to the given question a Keynesian theory is basically a theory which refers to the total…

Q: Briefly describe Keynesian/Demand side economic policy.

A: The measures or actions taken by governments, central banks, and other policy-making entities to…

Q: Discuss how Keynesian economic can help a country facing an economic recession.

A: Monetary policy describes or portrays the actions taken by the monetary authority of the nation…

Q: Explain why classical assumptions are not realistic

A: Economics is the study of how the scarce resources of society are exploited. It is a social science…

Q: Assess the view that the so-called New Keynesian models seek only to justify wage and price…

A: When talking about economic approaches, classical and Keynesian are kost widely used for different…

Q: Based on what you know about events in Europe after World War I, why does Keynes say the social and…

A: England was having more government and democratic system than other european countries after world…

Q: In theory, how does the Keynesian as well as the Neoclassical perspectives work in manipulating…

A: Keynesians contend that long-term fiscal and monetary policy should be focused on boosting potential…

Q: How are Milton Friedman’s theories a critique/response to Keynes’ theories?

A: Milton Friedman advocated for a free market economy with minimal government intervention.Friedman,…

Q: During the recession of 2008, Did the US Government take a page of the Keynesian Macro theory to…

A: Keynesian macro theory primarily identifies the role of government or government intervention in…

Q: How does New Keynesian and early Keynesian differ? What are the possible explanation for this…

A: The two basic school of economic reflecting two major views are: Classical economics and Keynesian…

Q: Do you believe that the Hayek's classical AD-AS model explains the factors that cause changes…

A: The Hayek's classical AD-AS model can be illustrated as follows: In the figure, horizontal axis…

Q: How were the Keynesian, Monetarist and New Classical theories of the economy synthesized to develop…

A: Keynesian Theory: Keynesian hypothesis places that total interest won't generally meet the stock…

Q: SUMMARIZE THREE KEYNESIAN THEORIES AND DISCUSS WHY THEY ARE VERY IMPORTANT TO EVALUATE AND…

A: Macroeconomics is a part of economics that deals with production, decision and allocation concerning…

Q: In the Keynesian model (that is, the short run), what causes recessions?

A: The objective of the question is to understand the causes of recessions in the short run according…

Q: Brief explanation on keynesian model and its diagram

A: Aggregate Demand: It refers to the total demand for goods and services in the economy within a given…

Q: Is Say’s Law or Keynes’s Law a better macroeconomic perspective for our economy ? Explain.

A: Macroeconomics is the division of economics that talks about the economy as a whole. In this, the…

Q: ccording to the British economist John Maynard Keynes, economic instability was a product of…

A: John Maynard Keynes was a British economist who lived from 1883 until 1946. He is best known as the…

Q: Write an equation that expresses the Keynesian production function as depicted by the business cycle

A: The Keynesian theory, also known as Keynesian economics, is an economic theory developed in the 20th…

Q: Describe a situation in an economy that John Maynard Keynes would believe needs government support.…

A: John Maynard Keynes was the well-known economists whose theories and models are still studied and…

Q: list four differences between new keynesian and real business cycle models?

A: Real business cycle theory posits that fluctuations in output and employment are primarily caused by…

Q: The AD/AS model is static. It shows a snapshot of the economy at a given point in time. Both…

A: The aggregate demand-aggregate supply model is a Keynesian macroeconomic model that graphically…

Q: Why Keynes argues that the “Classical” approach is a “special case” while his approach is the…

A: Introduction The classical economist believes that there is full employment exists in the economy.…

Q: Explain Keynesian policy for fighting unemployment and inflation.

A: Keynesian economics explains how total expenditure affects production, employment, and inflation.…

Q: Explain and show in detail whether the following sentence is correct or incorrect: "For Keynes, the…

A: During a downturn of the economy, sticky prices and wages would tend to be sticky which could in…

Q: Keynesian Assault on Classical Economics: Why did a drastic change in the economic atmosphere of the…

A: Economics is the study of how the scarce resources of society are exploited. It is a social science…

Q: Now that you have learned about the Keynesian perspective, what do you think about it?  In your…

A: Economics is the study of how the scarce resources of society are exploited. It is a social science…

Q: Currently many forecasters are predicting a recession for this year. What type of fiscal should the…

A: In order to affect economic conditions, particularly to stabilize economic volatility and foster…

Q: How do Classical economists and Keynesian economists differ in their perceptions of how well markets…

A: The classical theory focuses on free markets and that the markets will regulate themselves when they…

Q: We call the model of income determination  a Keynesian . What makes it Keynesian, as opposed to…

A: In economics, there are two popular school of thoughts: classical and Keynesian. The classical…

Q: Explain the concept of Neoclassical Model and the Keynesian economics model

A: Neoclassical economics and Keynesian economics are two contrasting schools of thought within the…

Q: Discuss the Keynes's general theory

A: Keynes's General Theory challenges classical economics by asserting that fluctuations in aggregate…

Q: I need a basic explanation of John Maynard Keynes work.

A: At the time of Great Depression of the 1930s all the basic existing economic theory was unable to…

Q: Using a diagram, illustrate the classical economists' solution to the inflationary gap.

A: The aggregate demand curve shows the negative relationship between the price level and the real GDP,…

Q: What are the three well-structured paragraphs the basic principles of the New Keynesian Economics?

A: The field of economics that depicts a modern twist on the doctrine of macroeconomics evolving from…

Q: What is the effect of a termpoary increase in productivity in the Keynesian model, with sticky…

A: The sticky wage model is an economic framework that explains how wages adapt slowly to shifts in the…

Q: Why do economists think the classical dichotomy holds in the long run?

A: The classical dichotomy refers to the classical theory that real variables are independent of…