Imagine that the AD curve intersects the AS curve in the Neoclassical Region and that the price of oil increases dramatically. What happens to the level of GDP? Group of answer choices (A) It goes down. (B) It stays the same. (C) It goes up.
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A: Neoclassical economists believe in Say’s Law, which states that demand creates its own supply while…
Q: Which one of the following is the best example of someone acting according to the assumptions of the…
A: The neoclassical model is the model that describes steady economic growth based on labor, capital,…
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- Economics What does it mean to “vote with your dollar,” and how does this relate to Walras’s theory of General Equilibrium? Explain the relevant neoclassical assumptions for his model to work, and then give and support your opinion to the following question: are markets a good way to allocate resources?In the neoclassical Supply and Demand model, what is meant by shortage? Group of answer choices Making a bet that the value of a stock will go down. At the existing price, the quantity demanded exceeds the quantity supplied. At the existing price, quantity supplied exceeds the quantity demanded. A decrease in quantity demanded.Which one of the following statements is false? Group of answer choices -The neoclassical model came to dominate economic thinking in the twentieth century. -The neoclassical model used solar energy as the primary input to production. -The neoclassical model takes a narrower view of human motivations than the behavioral model. -The idea of rationality is at the core of the neoclassical model. -The neoclassical model is the basis for Paul Samuelson’s textbook on introductory economics.
- Pick 1 answer. 4. Summarize the Neoclassical model: A. The neoclassical model is built on the importance of aggregate demand as a cause of business cycles and a degree of wage and price rigidity, and thus does a sound job of explaining many recessions and why cyclical unemplovment rises and falls. B. The neoclassical model emphasizes aggregate supply by focusing on the underlying determinants of output and employment in markets, and thus tends to put more emphasis on economic growth and how labor markets work c. The neoclassical model emphasizes aggregate demand by focusing on the underlying determinants of output and employment in markets, but tends to but less emphasis on economic growth and how labor markets work. 9.In the Teenaged Neoclassical Model (akin to Ramey's neoclassical framework), government purchases (G) are presumed to be intrincally useless; one example might be military spending in a country without foreign enemies. In the TNM, when government purchases rise, what happens to GDP (Y) and to subjective well-being (U)? Y rises, U falls. Y falls, U falls. Y rises, U rises. Y falls, U rises.Please don't use AI to solve these questions
- What policies will a Neoclassical Economist tell the government to enact in order to foster a healthy economy? a) The government should increase production output through regulating sales of resources and strictly monitor exports and imports. b) The government should implement the COLA to improve the economy c) The government should set up and regulate wages and unions, and set price floors and ceilings for specific fundamental goods. d) The government should keep inflation low and maintain low tax levels over the long run.According to a neoclassical perspective, in the long run, a surge in aggregate demand will most likely result in A) A rise in the level of output. B) An increase in the aggregate price level. C) A decline in the level of output D) Downward pressure on the price level.A key difference between neoclassical and Keynesian economists is how to predict and treat the future growth of the economy. Neoclassicalists believe the focus should be on ____________ and Keynesians believe the focus should be on _________________. A, B, C, OR D ONE ANSWER A short-term problems; long-term problems B long-term problems; short-term problems C long-term problems; long-term problems D short-term problems; short-term problems
- When the economy is creating less output than its potential, it means: Multiple Choice о O о O contractionary policy needs to be enacted. the government will reduce its spending. the economy is expanding. some resources are unemployed.Limit your answers within 5 pages. Hard-copy, no email attachments. 1 PART - I 1.1 Multiple Choice Questions Q1 The government raises lump-sum taxes on income by $100 billion, and the neoclassical economy adjusts so that output does not change. If the marginal propensity to consume is 0.6, public saving: A) rises by $100 billion. B) rises by 860 billion. C) falls by $60 billion. D) falls by $100 billion. Q2 Based on the table, owners' equity will fall to zero if loan defaults reduce the value of total assets by percent. A) 10 percent. B) 20 percent. C) 30 percent. D) 40 percent. Assets Reserves Loans Securities Bank Balance Sheet $ 10,000 $ 100,000 $ 40,000 1 Liabilities and Net Worth Deposits Debt Equity $ 100,000 $ 20,000 $ 30,000Which one of the following is the best example of someone acting according to the assumptions of the traditional neoclassical model? -Dori studies hard for her test so she can eventually land a great job. -Alenia buys groceries for her sick neighbor out of kindness. -Marc buys a pack of cigarettes out of habit. -Chip buys an exercise machine based on a TV ad, even though research has shown that the machine is ineffective.
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