xplain the keynesian theory of high public spending to stimulate economic grow

Q: Consider a closed economy Keynesian model. An exogenous collapse in private sector investment…

A: The investment comes from the investment in the private sector or the government sector. The…

Q: What is meant by dynamic inconsistency? Give at least two examples of policies that are dynamically…

A: The allocation of limited resources to maximize the welfare of an economy is referred to as…

Q: Outline the five main macroeconomic objectives that the South African government strives to achieve.

A: Macroeconomics is a branch of economics dealing with the structure, performance, behavior, and…

Q: In 60 words or less what is the major economic thought of John Maynard Keynes?

A: Keynesian economics theory was developed by the British economist John Maynard Keynes in the 1930s.…

Q: Using more data points results in an estimated MPC of 0.65 for Africa.  In December, the Africa…

A: How much investment going to multiply in the economy depends on how much the household sector…

Q: Explain what tendency does consumption smoothing refer to and why is it assumed in an intertemporal…

A: Consumption smoothing is the process of maximizing our level of living by maintaining a healthy…

Q: True or False If spending exceeds output, real GDP will decline as firms cut back on production.

A: If Actual Spending is greater than the Output, then more is being demanded than is being supplied.…

Q: ne practical limitation with Keynesian economics is the challenge of implementing active economic…

A: The numerous macroeconomic theories and models of how aggregate demand significantly affects…

Q: Describe a situation in an economy that John Maynard Keynes would believe needs government support.…

A: John Maynard Keynes was the well-known economists whose theories and models are still studied and…

Q: At which point would the government be most likely to try to stimulate the economy

A: Government: It refers to the people who focus on the growth of the economy. The government helps…

Q: Explain the relationship between consumption and saving in the Keynesian model.

A: The total expenditure within the economy and its consequences on output, employment, and inflation…

Q: Per Keynes, investment was determined mainly by the expected profit rate. True or False

A: Investment is nothing but the change in capital stock.

Q: What is Ricardian Model? What are the assumptions of Ricardian Model?

A: David Recardo gave model of international trade which is based on comparative advantage of the…

Q: Economic stabilisation programmes frequently include time gaps. Which lags in the effects of…

A: These lags are explained as under: 1. The Recognition Lag: It alludes to the time between the…

Q: Which worldview makes the most sense?Keynesian perspective or the Neoclassical perspective of…

A: Keynesian perspective or economics refers to that branch of macroeconomics that focuses on…

Q: Discuss the main differences between Keynesian school with those of the Neo-Classicists.

A: Macroeconomics is a part of economics that deals with production, decision and allocation concerning…

Q: John Maynard Keynes spearheaded a new school of macroeconomic theory during the Great Depression.…

A: The objective of the question is to identify the key principles or viewpoints that represent the…

Q: Classics believed money wage cuts could restore full employment; Keynes argued that such cuts would…

A: In financial matters, unemployment happens when individuals are without work while effectively…

Q: The two principles that make a person a “Keynesian” consist of the ideology that the private economy…

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

Q: If planned expenditures are below actual production, what will happen to income?  Explain the…

A: If planned expenditure is below than the actual production, then the income will decrease. Because,…

Q: summary of the key differences between Keynesian Economics and Classical/Neoclassical Economics

A: The classical economic theory assumed that if demand for a commodity or service increased, prices…

Q: What are the principal differences between the Neoclassical and Keynesian approaches with examples

A: Neoclassical and Keynesian approaches provide varied Macroeconomic interpretations. The…

Q: Y =  C +  S even when the economy is not in equilibrium.  True Or False

A: In an economy, saving is the part of income which is not spent on consumption expenditure, and so Y…

Q: why does the budget require a forecast of the economy? under what circumstances would actual…

A: The forecast of the economy is important to estimate the expenditure and revenue. If the economy is…

Q: How would a Keynesian Economist use Fiscal Policy to fight a Recession? Please do not write about…

A: "Recession means reduction or fall in the economic activity and this fall is visible in real GDP,…

Q: Consider the standard neoclassical growth model where there are two types of individuals:…

A: Since the question you have posted consists of multiple parts, we will answer the first two…

Q: If  taxes are increased, will most people save more or less than before? Does national saving rise…

A:

Q: According to you what is the difference between Ricardian Model and the HeckscherOhlin (HO) model?

A: The Ricardian model and Heckscher Ohlin model are two models that explain the theory of comparative…

Q: Consider a 4-sector Keynesian model like that discussed in class with the following characteristics:…

A: Given consumption=10000 taxation=4000 government spending=5000 exports=5000 import demand is given…