Which of the following is most likely to advocate the use of fine tuning?   Supply-siders Classical economists Keynesians Monetarists, Chicago School economists Austrian School economists

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: Some people have argued that the high inflation of the late 1970s was a consequence of the fact that…

A: The Federal Reserve:It has the responsibility to manage the activities of commercial and financial…

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: A severe negative supply shock occurs when there is a significant reduction in the supply of key…

A: Supply is the number of goods and services the supplier is willing and able to sell at the market.…

Q: Explain why classical assumptions are not realistic

A: Economics is the study of how the scarce resources of society are exploited. It is a social science…

Q: Explain what the neoclassical perspective on macroecomics emphasizes and briefly discuss its overall…

A:

Q: According to the lectures, which of the following ideas are representative of (neo)classical…

A: According to neoclassical theory, a firm's level of investment should be determined solely by its…

Q: Suppose the Central bank announces today a change in monetary policy: it is increasing target…

A: People will create their expectations about what will be happening in the future based on what has…

Q: ccording to the British economist John Maynard Keynes, economic instability was a product of…

A: John Maynard Keynes was a British economist who lived from 1883 until 1946. He is best known as the…

Q: Economists are rethinking monetary and fiscal policy. That’s a potentially positive development.…

A: Monetary  Policy  :  Monetary  policy refers to the actions and decisions taken by a  cwntral bank…

Q: Why do price levels increase when the government adopts fiscal or monetary policy to correct the…

A: The expansionary fiscal policy i.e. increase in public spending and reduction on taxes or the…

Q: Which policy is more effective—monetary policy or fiscal policy? Why?

A: The monetary and fiscal policy, both are the way or process to balance the economic activities in an…

Q: Explain how Milton Friedman's economic views differed from those of Keynes and explain why more…

A: John Maynard Keynes, a revolutionary economist of the 1930s, had published his book, "General…

Q: he Spending Hypothesis explanation for the Great Depression

A: Different explanations are found out the cause of the great depression when the aggregate demand was…

Q: What are the major policy conclusions of classical economics? Explain how these policy conclusions…

A: Classical economics promotes the fact that free markets help in achieving an efficient outcome and…

Q: Provide arguments why should policymakers use fiscal and monetary instruments to control aggregate…

A: Meaning of Aggregate Demand and Aggregate Supply: The term aggregate demand refers to the…

Q: What is the philosophical, economic essence of Keynesian doctrine or “Keynesianism” that emerged…

A: The philosophy of Keynesian doctrine or Keynesianism on the great depression was that there exist…

Q: Suppose you flipped an honest coin ten times and heads came up eight times. You are about to toss…

A: Rational expectation refers to creating expectations with the help of all the available information…

Q: As we grow up, we are told about the virtues of thrift. Those who spend all their income are…

A: Answer: We can analyze the prediction of "those who spend all their income are condemned to end p…

Q: Why would neoclassical economists think that the government doesn't need to take many steps to…

A: People that are able to work but are unable to do so are considered to be unemployed. People who are…

Q: 1. Evaluate the ability of the Cobb Douglas production function to represent the supply side in an…

A: The function which gives the technological relation between quantities of output and quantities of…

Q: What is the Keynesian and Neoclassical models

A: The Keynesian and Neoclassical models are two economic models with different points of view…

Q: The Keynesian economic framework is based on an assumption that: A) an increase in government…

A: In economics, different frameworks have different assumptions. And this difference in assumptions…

Q: Which of the following statements is most accurate? The Keynesian model focuses on…

A: A macroeconomic theory called the Keynesian economic model places a strong emphasis on how aggregate…

Q: Show and explain graphically the AD/AS model in neoclassical economic and macroeconomic.

A: The neoclassical approach is an economic theory that emphasizes the role of markets and the behavior…

Q: Suppose that an economy wants to boost available labor hours in order to increase aggregate supply.…

A: In the classical model the short run aggregate supply is upward sloping. Shown in the graph below is…

Q: Discuss how public choice theory makes the Keynesian Model less relevant/impactful.

A: A theorem that states the use of economic tools in order to deal with traditional problems of…

Q: Aggregate Supply:  Explain whether the economy is currently operating in the Keynesian, intermediate…

A: The aggregate supply is the summation of the individual supplies of the economy at various prices at…

Q: Which of the following statements has been proposed as a benefit of passive policy making? Passive…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Laffer Curve Analysis

In terms of economics, the Laffer curve was popular among those economists who were or who belonged to the supply side of the economic peripheral.  This concept was popularized by the famous supply-side economist known as Arthur Laffer. This curve illustrated the relationship between the tax rates and government revenue. It is already known that the tax which the public or individuals residing in an economy bear is the revenue or income of the government with the help of which the government does all the necessary works in the society, which is beneficial for the economy.