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 5RQ
Does neoclassical economics focus on the long term or the short term? Explain your answer.
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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
- Using “The Evolution of Economic Thought” book by Randy R. Grant and Stanley L. Brue as reference, 1. How was the neoclassical school valid, useful or correct in its time? Give explanation 2. List all the major tenets of neoclassical school of economics. And please give an explanation.arrow_forwardWhat does Chang mean when he describes Neoclassical economics as being more "versatile" than other schools of economic thought? You may answer in a paragraph or two.arrow_forwardWhy would an economist choose either the neoclassical perspective or the Keynesian perspective, but not both?arrow_forward
- What are 4 basic assumptions of neoclassical economicsarrow_forwardWhich of the following statements best describes the Neoclassical perspective? OWe should study events like the Great Depression and Great Recession to learn more about macroeconomics ORecessions are primarily caused by a decline in spending OFocusing on the changes in potential GDP is more useful than aggregate demand OSticky wages are the primary cause of recessionsarrow_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_forward
- Identify and explain three differences between neoclassical economics economics and behavioral economics?arrow_forwardThe methodology of ________ economics says that models should be based on predictions and not assumptions.arrow_forwardQ1: How does the so-called 'weak' approach to sustainability within neoclassical economics differ from the 'strong' approach to sustainability within natural science?arrow_forward
- What policies will a Neoclassical Economist tell the government to enact in order to foster a healthy economy? a) The government should increase production output through regulating sales of resources and strictly monitor exports and imports. b) The government should implement the COLA to improve the economy c) The government should set up and regulate wages and unions, and set price floors and ceilings for specific fundamental goods. d) The government should keep inflation low and maintain low tax levels over the long run.arrow_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_forwardEconomics(including finance)is a social science that studies how to allocate scarce resources. Neoclassical economics is a school of economics that was first formed in the late 19th century and dominated the economic thought for most part of the 20th century. All the economic and financial theories you have learned so far belong to the neoclassical economics. These theories are based on some fundamental assumptions of human behavior. Can you list at least four of these assumptions and briefly explain them?arrow_forward
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