According to the lectures, which of the following ideas are representative of (neo)classical (orthodox) theory, which are representative of (post)Keynesian (heterodox) theory, and which are shared by both theories? The loanable funds market Capitalist economies will normally fail to reach full employment due to insufficient aggregate demand Investment and savings are primarily functions of the rate of interest Savings equals investment in equilibrium (ignoring government or foreign sector) Capitalist economies tend to full employment, at least in the long run The paradox of thrift Demand, particularly intended investment, drives supply "In the long run, we're all dead" Interest rates fall when money saved exceeds the demand for those funds for investment, until savings equals investment Output, income, and employment fall when money saved exceeds intended investment, until savings equals investment Saving is a leakage out of, and investment is an injection into, the spending flow In equilibrium, aggregate demand (total planned spending) must equal output and income Supply creates its own demand 1.(neo)classical2.(post)Keynesian3.Both

* ANSWER :- from the above information the answer is provided as follows

Answered: According to the lectures, which of the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

According to the lectures, which of the following ideas are representative of (neo)classical (orthodox) theory, which are representative of (post)Keynesian (heterodox) theory, and which are shared by both theories?

	The loanable funds market
	Capitalist economies will normally fail to reach full employment due to insufficient aggregate demand
	Investment and savings are primarily functions of the rate of interest
	Savings equals investment in equilibrium (ignoring government or foreign sector)
	Capitalist economies tend to full employment, at least in the long run
	The paradox of thrift
	Demand, particularly intended investment, drives supply
	"In the long run, we're all dead"
	Interest rates fall when money saved exceeds the demand for those funds for investment, until savings equals investment
	Output, income, and employment fall when money saved exceeds intended investment, until savings equals investment
	Saving is a leakage out of, and investment is an injection into, the spending flow
	In equilibrium, aggregate demand (total planned spending) must equal output and income
	Supply creates its own demand

1.	(neo)classical
2.	(post)Keynesian
3.	Both

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions