Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 26, Problem 10RQ
Do neoclassical economists tend to focus more on long term
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Does neoclassical economics focus on the long term or the short term? Explain your answer.
In what way is neoclassical economics different from old and new institutional economics? Which school of thought is founded on principles that are closer to reality?
If the production conditions in the United States and Japan were to become essentially the same, would the neoclassical model suggest that trade between the two countries would cease? Why or why not? Illustrate your answer with a graph.
Chapter 26 Solutions
Principles of Economics 2e
Ch. 26 - Do rational expectations tend to look back at past...Ch. 26 - Legislation proposes that the government should...Ch. 26 - Would it make sense to argue that rational...Ch. 26 - Summarize the Keynesian and Neoclassical models.Ch. 26 - Does neoclassical economics focus on the long term...Ch. 26 - Does neoclassical economics view prices and wages...Ch. 26 - What shape is the long-nm aggregate supply curve?...Ch. 26 - What is the difference between rational...Ch. 26 - A neoclassical economist and a Keynesian economist...Ch. 26 - Do neoclassical economists tend to focus more on...
Ch. 26 - Do neoclassical economists tend to focus more on...Ch. 26 - Do neoclassical economists see a value in...Ch. 26 - If aggregate supply is vertical, what role does...Ch. 26 - What is the shape of the neoclassical long-run...Ch. 26 - When the economy is experiencing a recession, why...Ch. 26 - If the economy is suffering through a rampant...Ch. 26 - If most people have rational expectations, how...Ch. 26 - Explain why the neoclassical economists believe...Ch. 26 - Economists from all theoretical persuasions...Ch. 26 - Is it a logical contradiction to be a neoclassical...Ch. 26 - Use Table 26.3 to answer the following questions....
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Similar questions
- In neoclassical economics, if there is unemployment, it means that:arrow_forwardFrom a neoclassical view, which of the following is less important? fighting unemployment encouraging long-term growth encouraging more productivity per worker level of potential GDParrow_forwardWhy would an economist choose either the neoclassical perspective or the Keynesian perspective, but not both?arrow_forward
- From a neoclassical view, which of the following is least important? Select one: a. improving the corporate portfolio b. stimulating potential GDP c. increasing aggregate demand to fight unemployment d. encouraging long-term growtharrow_forwardOne practical limitation of the Classical or Neoclassical model is that it suggests allowing the economy to self-correct in the long run, but recessions may last a very long time. How severe is this problem and why? What is one example?arrow_forwardMacroeconomics: Regarding Neoclassical Economic Theory: Question: Which type of interventions, if any, are best for the economy? Can you explain your reasoning behind that answer please?arrow_forward
- What does potential GDP mean and what does it mean in terms of neoclassical analysis? Please be sure to utilise examples.arrow_forwardWhat are 4 basic assumptions of neoclassical economicsarrow_forwardDefine equilibrium and steady state. Can we find a steady state for each dynamic general equilibrium model? Why or why not?arrow_forward
- If a neoclassical model shows increasing wages growing faster than productivity in the economy over the long run, what else will likely occur? inflationary increase in price level substantial short-term off-setting decrease in output change in government policy to decrease in aggregate demand short-run decrease in cyclical unemploymentarrow_forwardWhich one of the following is the best example of someone acting according to the assumptions of the traditional neoclassical model? -Dori studies hard for her test so she can eventually land a great job. -Alenia buys groceries for her sick neighbor out of kindness. -Marc buys a pack of cigarettes out of habit. -Chip buys an exercise machine based on a TV ad, even though research has shown that the machine is ineffective.arrow_forwardWhat is the Stackelberg Theory in Economics?arrow_forward
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