Principles of Macroeconomics 2e
2nd Edition
ISBN: 9781947172388
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 13, Problem 18CTQ
Explain why the neoclassical economists believe that the government does not need to do much about
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Why would neoclassical economists think that the government doesn't need to
take many steps to combat unemployment? Whether you concur or disagree
Explain.
In a neoclassical model, describe how each of the following developments or measures will impact unemployment:• a rise in income levels for consumers throughout the economy• cheaper imported products• a fall in government spending
Explain how each of the following events or policies will affect unemployment in a neoclassical model:
tax cut for consumers
a rise in business confidence that increases investment
a fall in export sales to a major trading partner
a rise in income levels for consumers throughout the economy
cheaper imported products
a fall in government spending
Chapter 13 Solutions
Principles of Macroeconomics 2e
Ch. 13 - Do rational expectations tend to look back at past...Ch. 13 - Legislation proposes that the government should...Ch. 13 - Would it make sense to argue that rational...Ch. 13 - Summarize the Keynesian and Neoclassical models.Ch. 13 - Does neoclassical economics focus on the long term...Ch. 13 - Does neoclassical economics view prices and wages...Ch. 13 - What shape is the long-nm aggregate supply curve?...Ch. 13 - What is the difference between rational...Ch. 13 - A neoclassical economist and a Keynesian economist...Ch. 13 - Do neoclassical economists tend to focus more on...
Ch. 13 - Do neoclassical economists tend to focus more on...Ch. 13 - Do neoclassical economists see a value in...Ch. 13 - If aggregate supply is vertical, what role does...Ch. 13 - What is the shape of the neoclassical long-run...Ch. 13 - When the economy is experiencing a recession, why...Ch. 13 - If the economy is suffering through a rampant...Ch. 13 - If most people have rational expectations, how...Ch. 13 - Explain why the neoclassical economists believe...Ch. 13 - Economists from all theoretical persuasions...Ch. 13 - Is it a logical contradiction to be a neoclassical...Ch. 13 - Use Table 26.3 to answer the following questions....
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Similar questions
- Write a word defense of either the Keynesian perspective or the Neoclassical perspective of economics. Which worldview makes the most sense? You are encouraged to relate your explanation to specific examples, politics, the fashion industry, your own life, etc.arrow_forwardExplain how each of the following events or policies will affect unemployment in a neoclassical model: a rise in income levels for consumers throughout the economy cheaper imported products a fall in government spendingarrow_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_forward
- Does the graph above reflect a Classical Model or a Keynesian Model? How do you know? What is happening in this economy in the short run?arrow_forwardExplain what is meant by ‘macroeconomics’ and why some economists think that it is different to standard neoclassical economics. explain with graphs please.arrow_forwardWhat is the Keynesian and Neoclassical models.arrow_forward
- Why would an economist choose either the neoclassical perspective or the Keynesian perspective, but not both?arrow_forwardNeoclassical economics does not provide an adequate conceptual framework for the analysis and understanding of economic change and the dynamics of the global economy. Why? In recent years which theory challenges the fundamental assumptions of the neoclassical theory? What is counter-arguments? Explain and discuss.arrow_forwardWhat is the neoclassical explanation for the natural rate or the NAIRU?arrow_forward
- Explain what are the differences between classical economist and Keynesian economist point of view?arrow_forwardAccording to neoclassical labor supply model, one reason why women have lower labor force participation than men is gender wage gap, the fact that their time in labor markets is less valued than men. True Falsearrow_forwardPlease expain in detail what is the Neoclassical Economics view of labor markets. How do they function?arrow_forward
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