Homework Answers
Ans: the interest rate.
Explanation:
In the classical model of economics , the level of saving is determined most directly by the interest rate. Because , Classical economists believed that saving is an increasing function of interest rate. Saving increases when the rate of interest increases and vice versa.
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In the Classical model of economics, the level of saving is determined most directly by the...
21) Which one of the following statements is true? A) In the classical model, the supply of saving is determined by the...
21) Which one of the following statements is true? A) In the classical model, the supply of saving is determined by the rate of interest B) In the classical model, the supply of saving is determined by the level of income C) In the Keynesian model, the supply of saving is determined by the level of investment D) In the Keynesian model, the supply of saving is determined by the rate of interest 22) Without Money's important service as a...
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According to classical economics: both real GDP and price level are determined by aggregate supply. both real GDP and price level are determined by aggregate demand. real GDP is determined by aggregate demand, while the equilibrium price level is determined by aggregate supply. real GDP is determined by aggregate supply, while the equilibrium price level is determined by aggregate demand. price level cannot be changed as prices and wages are perfectly rigid. All members of the Federal Board of Governors...
[8] In Keynesian economics the most important factor determining whether the level of economic activity is...
[8] In Keynesian economics the most important factor determining whether the level of economic activity is growing or shrinking is: A) the multiplier effect. B) government expenditure and tax policies. C) the behavior of nonincome-determined spending. D) the relationship between leakages from and injections into the spending stream. [9] Using the Keynesian approach, if leakages from the spending stream are less than injections, the current level of output is: A) less than the equilibrium level of output, and will increase....
queation 4&5 QUESTION 4 The classical model indicates that at the equilibrium interest rate, Saving is less than...
queation 4&5
QUESTION 4 The classical model indicates that at the equilibrium interest rate, Saving is less than investment. unnecessary for investment. equal to investment, greater than investment. QUESTIONS Which of the following is a TRUE statement? Classical economists believed real GDP adjusted more than prices when aggregate demand fell, while Keynes argued that prices adjusted more than output. Classical economists believed price adjusted more than output when aggregate demand fell, while Keynes argued real GDP adjusted more than prices...
Explain how output (GDP) is determined according to the classical model and how it is distributed...
Explain how output (GDP) is determined according to the classical model and how it is distributed among the factors of production according to the neoclassical model
Use the classical (RBC) IS-LM-FE model to show the effects on the economy of a temporary...
Use the classical (RBC) IS-LM-FE model to show the effects on the economy of a temporary decrease in government spending. You should show the impact on the real wage, employment output, the real interest rate, consumption, investment, and the price level
Use the classical (RBC) IS-LM-FE model to show the effects on the economy of a temporary decrease in government spending. You should show the impact on the real wage, employment output, the real interest rate, consumption, investment, and the...
a. Describe the short-run determination of equilibrium real GDP and the price level in the classical...
a. Describe the short-run determination of equilibrium real GDP and the price level in the classical model. b. Discuss the essential features of Keynesian economics and explain the short-term aggregate supply curve.
Classical economists tend to see unemployment as a persistent economic problem. believe in Keynesian economics. reject...
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of a closed economy. when 6. According to the classical long-run macroeconomic model of a co...
of a closed economy. when 6. According to the classical long-run macroeconomic model of a co decrease and government spending is unchanged a consumption and investment both increase b. consumption and investment both decrease c consumption increases and investment decreases d. consumption decreases and investment increases. 7. Suppose a business-friendly billionaire becomes president. As a result, businesses become optimistic about the future and more eager than before to increase their investment spending According to the classical long-run macroeconomic model of...
"Current economic parameters are determined by past rational expectations" is a property of the__________ school of thought....
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21) Which one of the following statements is true? A) In the classical model, the supply of saving is determined by the rate of interest B) In the classical model, the supply of saving is determined by the level of income C) In the Keynesian model, the supply of saving is determined by the level of investment D) In the Keynesian model, the supply of saving is determined by the rate of interest 22) Without Money's important service as a...
queation 4&5
QUESTION 4 The classical model indicates that at the equilibrium interest rate, Saving is less than investment. unnecessary for investment. equal to investment, greater than investment. QUESTIONS Which of the following is a TRUE statement? Classical economists believed real GDP adjusted more than prices when aggregate demand fell, while Keynes argued that prices adjusted more than output. Classical economists believed price adjusted more than output when aggregate demand fell, while Keynes argued real GDP adjusted more than prices...
Use the classical (RBC) IS-LM-FE model to show the effects on the economy of a temporary decrease in government spending. You should show the impact on the real wage, employment output, the real interest rate, consumption, investment, and the price level
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a. Describe the short-run determination of equilibrium real GDP and the price level in the classical model. b. Discuss the essential features of Keynesian economics and explain the short-term aggregate supply curve.
of a closed economy. when 6. According to the classical long-run macroeconomic model of a co decrease and government spending is unchanged a consumption and investment both increase b. consumption and investment both decrease c consumption increases and investment decreases d. consumption decreases and investment increases. 7. Suppose a business-friendly billionaire becomes president. As a result, businesses become optimistic about the future and more eager than before to increase their investment spending According to the classical long-run macroeconomic model of...
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