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

Q: Compare and contrast Neoclassical Economic Theory to Keynesian Economic Theory and post the…

A: Neoclassical economics is a theory that focuses on how the perception of efficacy or usefulness of…

Q: Оuestion 21: Why does Keynes believe that state intervention is sometimes necessary?

A: Keynes argues that lacking generally speaking interest could prompt delayed times of high…

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: Briefly describe Keynesian/Demand side economic policy.

A: The measures or actions taken by governments, central banks, and other policy-making entities to…

Q: What might be some Keynesian prescriptions to get the economy out of an economic slump (both fiscal…

A: Under the Keynesian theory, the aggregate demand is given by the sum of consumption demand (C),…

Q: Think back to August 6, 1945. The United States has just dropped an atomic weapon on the city of…

A: It was during the 1939 gathering of dark war clouds over Europe that Keynes saw it as an opportunity…

Q: Based on what you know about events in Europe after World War I, why does Keynes say the social and…

A: England was having more government and democratic system than other european countries after world…

Q: the effect of a decrease in government spending in the classical model

A: Answer: Introduction: The classical economist believes in 'laissez-faire'. It means they deny the…

Q: How are Milton Friedman’s theories a critique/response to Keynes’ theories?

A: Milton Friedman advocated for a free market economy with minimal government intervention.Friedman,…

Q: Which of the following statements of fact about the role of the Canadian government in the economy…

A: Keynesian economists legitimize government mediation through open arrangements that expect to…

Q: During the recession of 2008, Did the US Government take a page of the Keynesian Macro theory to…

A: Keynesian macro theory primarily identifies the role of government or government intervention in…

Q: What was the most “nicompoopish” belief that Keynes ridiculed?

A: The J M Keynes is known as the father of Macroeconomics.  He is the biggest critique of classical…

Q: What were John Maynard Keynes views of the causes of recessions and solutions to fixing them?

A: A recession is a situation of economic contraction, where businesses experience low demand and there…

Q: The Keynesian theory was first introduced in 1936. Why was it presented at that time,  and what…

A: The period in which the world economy faced the biggest depression is 1930s, which is earmarked as…

Q: list four differences between new keynesian and real business cycle models?

A: Real business cycle theory posits that fluctuations in output and employment are primarily caused by…

Q: classical and Keynesian economists

A: The biggest disagreements in macroeconomics are related to the economic philosophy.

Q: Which of the following is a tool of the Federal Reserve’s monetary policy?   Group of answer…

A: The policy through which the central bank of the nation takes action for influencing the amount of…

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: How do Classical economists and Keynesian economists differ in their perceptions of how well markets…

A: The classical theory focuses on free markets and that the markets will regulate themselves when they…

Q: Which policy would be better or effective for stabilizing an economy, monetary or fiscal?

A: Economic policies are a set of strategies, actions, and measures implemented by a government or…

Q: According to the classical perspective (the one from the 19th century that I described at the…

A: The period of time where there is a significant decline in economic activity, lasting more than a…

Q: Question 5. What is the name of Keynesian book published in 1936?

A: Keynesians was a British economist who believed that the primary driving force of the market economy…

Q: I need a basic explanation of John Maynard Keynes work.

A: At the time of Great Depression of the 1930s all the basic existing economic theory was unable to…

Q: How can the government use the Keynesian perspective to improve unenployment?

A: Unemployment is defined as a situation where someone of working age is not able to get a job but…

Q: What role do inventories play in the equilibrating process in the simple Keynesian model (as…

A: The inventories are the unsold stock of output in the economy. Thus, it is unsold goods and services…

Q: What is the effect of a termpoary increase in productivity in the Keynesian model, with sticky…

A: The sticky wage model is an economic framework that explains how wages adapt slowly to shifts in the…

Q: Why do economists think the classical dichotomy holds in the long run?

A: The classical dichotomy refers to the classical theory that real variables are independent of…