What policy mistakes were made in the Great Depression? How can these mistakes be shown using the 3-equation model? Show in a diagram how fiscal stimulus could have averted a deflation trap

The Keynesian model suggests that .... should be preferred over .... since the ..... is larger than the ..... a. fiscal policy / monetary policy / unplanned changes in inventories / marginal propensity to consume. b. fiscal policy / monetary policy / impact of money supply / marginal propensity to consume. c. government sprending / tax cuts / tax multiplier / government-spending multiplier. d. government sprending / tax cuts / government-spending multiplier / tax multiplier. e. monetary policy / fiscal policy / impact of money supply / marginal propensity to consume.

From a spending model perspective, explain the causes and dynamics of a recession   Identify and summarize the market dynamics triggered by changes in leakages and injections.   How measures like GDP, unemployment and inflation play  out in the different scenarios?   How do propensities and multipliers, and even expectations affect the outcomes in a downturn?

What is the role of supply shocks in the Keynesian explanation of business cycles? What are the limitations of fiscal and monetary policy in the Keynesian model when an oil shock disturbs the economy? Explain and illustrate graphically.

Provide arguments why should policymakers use fiscal and monetary instruments to control aggregate demand and stabilize the economy. If so, when? If not, why not?

Can someone please answer both questions asap?In a basic Keynesian macroeconomic model, if Effective demand is greater than the output then   A.  ED > Y(I > S) - V (decrease) Y (increase)   B.  ED > Y(I > S) - V (increase) Y (decrease)   C.  ED < Y(I < S) - V (decrease) Y (increase)   D. ED < Y(I < S) - V (increase) Y (decrease) Question 2   What would happen in the market for loanable funds if the government were to decrease the tax rate on interest income?   A. The supply of and demand for loanable funds would shift right. B. The supply of and demand for loanable funds would shift left. C. The supply of loanable funds would shift right and the demand for loanable funds would shift left. D. None of the above is correct.

Use the AS/AD model to determine how each of these events will affect the economy. Determine if the economy is initially to the LEFT, ON, or to the RIGHT of the LARS Type exactly one of these 3 options for credit for each of the letters. A- Initial situation: cyclical unemployment is 4% B initial situation: overutilization of resources C-Initial situation: inflationary gap D-Initial situation: the unemployment rate is equal to the natural rate of unemployment E-Initial situation: a positive GDP GAP F-Initial situation: unemployment rate of 6% (US economy) G-Initial situation: cyclical unemployment is zero. H-Initial situation: a recession

Macroeconomic policies, both fiscal and monetary, are essentially Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. Procyclical a b Counter cyclycal always expanssionary always contractionary.

Suppose an economy is hit by a recession and people’s income fall. a) Show graphically using AD-AS model how the price level and output are affected in the long-run. b) Can the government use fiscal policy to offset the effects on price level and output, explain?

What is the philosophical, economic essence of Keynesian doctrine or “Keynesianism” that emerged from the experience and attempted explanations of the Great Depression ? What would all Keynesians believe, in order to be “Keynesian?”