“Is wage and/or price rigidity necessary for Keynesian economics to explain involuntary unemployment?”                Evaluate with reference to: Keynes’s General Theory. The orthodox Keynesian school.  New Keynesian economics.

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: Explain the meaning of the term ‘animal spirits’. Please refer to and include a drawing of the…

A: The term ‘Animal Spirits’ was coined by the famous British economist, John Maynard Keynes, to…

Q: What’s the difference between how a Keynesian economist would sketch an AS curve and a Phillips…

A: Keynesians The Keynesian aggregate supply curve shows the inverse L shape curve, it explains that it…

Q: Suppose US real wages are higher than real wages in Europe in 2021. The Ricardian model predicts…

A: In the international market, Ricardian model beleives in the mobility of labor among the countries…

Q: According to the Keynesian framework, ____________ in _______________ may cause inflation, but not a…

A: Inflation usually means rise in prices and and recession is such a period where less demand are seen…

Q: According to the Keynesian economists a. the economy will always seek a level of long-term full…

A: Keynesian economists are the people who make their decision on the basis of theories developed by…

Q: Assume an economy is initially operating at the natural rate of output. a. Draw an AD-AS model.…

A: At different price levels, the aggregate demand curve depicts the total quantity of all commodities…

Q: While hyperinflations are always caused by rapid growth in the money supply, they can be intensified…

A: This concept can be defined as the speed of changing the hand of currency from one hand to another…

Q: In the (post) Keynesian theory prices are “management-based” (firms set prices)and…

A: Classical economists and Keynesian economists represents two perspective of market stabilization,…

Q: he graph below shows the AD-AS diagram for Spain.

A: Cyclical unemployment: It refers to the ups and downs in the overall employment due to the change in…

Q: In the Keynesian framework, which of the following events might cause recession/inflation. Explain…

A: When the aggregate demand for the country's goods and services rises, the price level and output in…

Q: Hayek says that markets will heal themselves and that government should not intervene. How does the…

A: The AD-AS model is a macroeconomic model that shows the relationship between the aggregate demand…

Q: Draw and properly label an AD-AS model to show Keynesian, intermediate, and neoclassical zones. Then…

A: The AD-AS model is a macroeconomic framework that elucidates the connection between the price level…

Q: Economist who generally empgasize the importance of aggregate supply in determining the size of the…

A: Aggregate Supply refers to the total quantity of output that all the firms in the economy will…

Q: In the Keynesian framework, for each of the following events which might cause a recession and/or…

A: Note:- Since we can only answer up to three subparts, we'll answer the first three please repost the…

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: e. What is the cross-price elasticity of demand for good X as the result of a given percentage…

A: The formula for cross price elasticity is given by: (% change in quantity demanded of good…

Q: What kind of policy is this? Discuss the effects of this policy proposal if it was in place as the…

A: Fiscal policy is when the government manipulates the spending and the taxes to manage the economy,…

Q: what are the perspectives of Keynes and Say regarding employment equilibrium and government…

A: Keynesian economics, developed by British economist John Maynard Keynes, and Say's Law, proposed by…

Q: Select all that apply to a Keynesian Economist:

A: Keynesian theory is demand side based theory. according to Keynes, level of employment and output of…

Q: Please provide steps by step answer with proper explanation with final answer.......

A: Keynesian economics advocates for government intervention in the economy, especially during…

Q: In the Keynesian framework, which of the following events might cause recession/inflation. Explain…

A: d. The interest rates rises. Explanation:- When the interest rises, cost of borrowing will also…