6. In the neoclassical model, low inflation is good becauseSelect the correct answer below:O it provides a better climate for government to increase spendingO it provides a better climate for businesses to increase their pricesit provides a better climate for a healthy and growing economy.O it reduces the need for bank supervision and oversight.

The neo-classical model revolves around the concepts of market demand and supply and believes that…

In the neoclassical model, low inflation is good because Select the correct answer below: O it provides a better climate for government to increase spending it provides a better climate for businesses to increase their prices it provides a better climate for a healthy and growing economy. O it reduces the need for bank supervision and oversight.

In the neoclassical model, low inflation is good because Select the correct answer below: O it provides a better climate for government to increase spending it provides a better climate for businesses to increase their prices it provides a better climate for a healthy and growing economy. O it reduces the need for bank supervision and oversight.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter26: The Neoclassical Perspective

Section: Chapter Questions

Problem 19CTQ: Economists from all theoretical persuasions criticized the American Recovery and Reinvestment Act....

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Similar questions

Consider the basic neoclassical model of labour market. Other things equal, a decrease in demand for labour decreases unemployment and decreases wages decreases employment and decreases wages O decreases employment and increases wages O increases unemployment and decreases wages OOOO
Explain why the neoclassical economists believethat the government does not need to do much aboutunemployment. Do you agree or disagree? Explain.
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 unemployment 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 is built on the importance of aggregate supply as a cause of business cycles and a degree of wage and price rigidity, but does a poor job of explaining many recessions and why cyclical unemployment rises and falls.
Based on the neoclassical economics, when AD, aggregate demand goes down, in the long run, there will be: An increase in prices and an increase in output O An increase in prices and a return to potential GDP O A decrease in prices and a return to potential GDP O A decrease in prices and a decrease in output
Neoclassical perspective is a- re sisitation of classical econolics, which states that short run dynamica of the economy dissipate very quicly due to inflexible porices. b- revisitation of classical eonomics, which statets that long run fynamics of the economy dissipate slowlllly due to inflexibilyti prices d- re visitation of classical economics which states that short run dynamics of the economy dissipate very quickly due to felexible prices
In the neoclassical model, if there is a sudden rise in the aggregate demand curve, in the short and long run it will cause O inflation. deflation. O an increase in output. A and C
If a neoclassical model shows increasing wages in the economy over the long run, what else will likely occur? inflationary increase in price level O short-run decrease in cyclical unemployment O change in government policy to decrease in aggregate demand O substantial short-term off-setting decrease in output
Match the policies below to whether they would be said by a Keynesian or Neoclassical economist: A. Policy should concentrate on minimizing cyclical unemployment B. Since the long-run aggregate supply curve is fixed, increasing aggregate demand too much will just lead to inflation 1. Neoclassical 2. Keynesian
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.
16. Pick 1 answer. 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 unemployment 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 is built on the importance of aggregate supply as a cause of business cycles and a degree of wage and price rigidity, but does a poor job of explaining many recessions and why cyclical unemployment rises and falls.
Which assumption is the Keynesian model based on? O people can afford a high level of government services. O prices and wages are sticky and do not adjust rapidly. O an increase in productivity will cause the aggregate demand curve to shift to the left. O an increase in input prices will cause the aggregate demand curve to shift to the left.
Briefly explain how one or more of the microeconomic components, namely consumption,investment, supply and demand for money influence macroeconomic outcomes and formulations of the following macroeconomic theories:a. Solow Growth Model b. The Mundell-Fleming model c. Neoclassical Model of Investment Use mathematical equations and graphs where necessary.