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

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, using examples, are the main contrasts between the Keynesian and Neoclassical approaches?

Only Keynesian economics argues for active macroeconomic policy.    True  False

Task of the modern economics: What is the difference between Keynesian theory of economics and the Classical Theory of economics?

In a Keynesian framework, which of the following government policy choices offer a possible solution to recession? A tax increase on consumer income. A surge in military spending. A reduction in taxes for businesses that increase investment. A major increase in what the U.S. government spends on healthcare.

What would the LM curve look like in a classical world? If this really were the LM curve that  we thought best characterized the economy, would we lean toward the use of fiscal policy or  monetary policy? (You may assume your goal is to affect output.

What policy changes would Keynes recommend to counteract a recession?

According to the neoclassical theory of distribution, a worker's real wage reflects her productivity. Let's use this insight to examine the incomes of two groups of workers: farmers and barbers. Let W, and W, be the nominal wages of farmers and barbers, P, and P, be the prices of food and haircuts, and MPL, and MPL, be the marginal productivity of farmers and barbers. a. Over the past century, the productivity of farmers (MPL) has risen substantially due to technological progress. According to the neoclassical theory, farmers' real wage (W/P) should have remained constant. increased. decreased. b. Over the past century, the productivity of barbers (MPL) has remained constant. According to the neoclassical theory, barbers' real wage (W/Pb) should have decreased. increased. Incorrect c. In parts a and b, real wages are measured as units of output per hour worked. the ratio of capital to labor. fluctuated randomly. Incorrect remained constant. fluctuated randomly. output per worker times…