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 19CTQ
Economists from all theoretical persuasions criticized the American Recovery and Reinvestment Act. The “Stimulus Package” was arguably a Keynesian measure so why would a Keynesian economist be critical of it? Why would neoclassical economists be critical?
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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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- For this assignment, please write a 200-300 word defense of either the Keynesian perspective or the Neoclassical perspective of economics. In other words, which worldview makes the most sense to you? You are encouraged to relate your explanation to specific examples, politics, the fashion industry, your own life, etc.arrow_forwardWrite 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_forwardWhy would an economist choose either the neoclassical perspective or the Keynesian perspective, but not both?arrow_forward
- Explain how Milton Friedman's economic views differed from those of Keynes and explain why more recent developments in the global economy can be said to have vindicated both Friedman's and Keynesian economic views.arrow_forwardSummarize the Keynesian and Neoclassical models.arrow_forwardA key difference between neoclassical and Keynesian economists is how to predict and treat the future growth of the economy. Neoclassicalists believe the focus should be on ____________ and Keynesians believe the focus should be on _________________. A, B, C, OR D ONE ANSWER A short-term problems; long-term problems B long-term problems; short-term problems C long-term problems; long-term problems D short-term problems; short-term problemsarrow_forward
- Would it make sense to argue that rational expectations economics is an extreme version of neoclassicaleconomics? Explain.arrow_forwardNow think about a major recession, like the one that occurred in 1982. (Hint: a major recession could be caused by a large shift to the left in the AD curve.) Why would a Keynesian policy make more sense in response to a major recession like the one that occurred in 1982? What would be the cost of following a neoclassical policy then?arrow_forwardAccording to Keynesian economics, what is the suggested approach to address a recession? A) Reduce government spending and taxes. B) Increase government spending to stimulate demand. C) Maintain a hands-off approach and let markets self-correct. D) Raise interest rates to control inflation.arrow_forward
- What is the philosophical, economic essence of Keynesian doctrine or “Keynesianism” that emerged from the experience and attempted explanations of the Great Depression ? What would all Keynesians believe, in order to be “Keynesian?”arrow_forwardAccording to a neoclassical perspective, in the long run, a surge in aggregate demand will most likely result in A) A rise in the level of output. B) An increase in the aggregate price level. C) A decline in the level of output D) Downward pressure on the price level.arrow_forwardWhat is the Keynesian and Neoclassical models.arrow_forward
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