Model Source of Business Cycle Fluctuations (i.e., recession) Major Tenets New Keynesian View (Mainstream Model) Classical...
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Model |
Source of Business Cycle Fluctuations (i.e., recession) |
Major Tenets |
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New Keynesian View (Mainstream Model) |
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Classical View (Real Business Cycle Model) |
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Monetarists |
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Austrian School |
Homework Answers
| model | source of recession | major tenets |
| new Keynesian view | Economy wide market failure - aggregate demand |
demand is influenced by many economic decisions, prices and wages respond slowly to supply and demand, change in aggregate demand has effect on output and employment. |
| classical view | change in technology - supply | Say's law |
| Monetarists | change in money stocks | monetary theory |
| Austrian school | excessive growth of bank credit due to low interest rate | Individualism, free markets, decentralisation of power, deductive reasoning, sound money. |
Add Answer to:
Model
Source of Business Cycle Fluctuations
(i.e., recession)
Major Tenets
New Keynesian View
(Mainstream Model)
Classical...
Read Eye on the Business Cycle. What, according to the mainstream theory of the business cycle,...
Read Eye on the Business Cycle. What, according to the mainstream theory of the business cycle, is the most common source of recession: a decrease in aggregate demand, a decrease in aggregate supply, or both? Which is the most likely component of aggregate demand to start a recession? How does the aggregate demand multiplier influence a recession? is the most common source of recession. According to the mainstream theory of the business cycle, a decrease in The most likely component...
Using the New Keynesian model framework, try to use the model to explain the Great Recession,...
Using the New Keynesian model framework, try to use the model to explain the Great Recession, also include in the model the affects of the Monetary and Fiscal Policy pursued by the Federal Reserve and Federal Government, respectively. How would does your explanation change when using the Real Business Cycle model?
Who is ‘right’ concerning the business cycle – the Keynesian school or Classical school? please draw...
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1 Like the new classical model, the new Keynesian model distinguishes between the effects from anticipated...
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Please use the following to answer the questions a. Mainstream View b. Monetarist View c. Real...
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a. Mainstream View
b. Monetarist View
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33. The significant increase in oil prices during the late 1970s and early 1980s created a reduction in labor productivity that had long-term effects on economic output and the price level, which lasted until the emergence of information and communication technology in the 1990s. 34. In 2000, the Federal Reserve raised interest rates several times. These actions are...
19. In the real business cycle model, output and employment are O A. determined by real...
19. In the real business cycle model, output and employment are O A. determined by real supply-side variables. O B. determined by supply and demand factors. O C. entirely demand determined. O D. affected by supply-side variables and unanticipated changes in demand. 20. Which of the following models depicts the role of money as affecting only the price level? O A. The new classical model O B. The Keynesian model O C. The real business cycle model O D. The...
According to which theory of the business cycle do changes in the quantity of money never...
According to which theory of the business cycle do changes in the quantity of money never play a role in helping to explain fluctuations in real variables? Select one a. monetarist bnew Keynesian c. Keynesian d real business de During a recession, spending on tends to fail mare dramaticaly than spendingon Select one a necessities, xuries b. nondurable goods durable goods cfood cars d. durable goods, nonduble goods ch Using the monetarist model, place the following events in the order...
11. The business cycle is a. a very deep and prolonged economic downturn (recession or depression)....
11. The business cycle is a. a very deep and prolonged economic downturn (recession or depression). b. the short-run economic fluctuations between expansions (inflationary gaps) and contracts (recessionary gaps). c. a period in which output and employment are rising d. a period in which output and employment are falling 2. If the price level and nominal GDP both doubled, then real GDP would a. increase by half. b. also double. C. remain unchanged. d. decrease by half. 3. The chain-weight...
Read Eye on the Business Cycle. What, according to the mainstream theory of the business cycle, is the most common source of recession: a decrease in aggregate demand, a decrease in aggregate supply, or both? Which is the most likely component of aggregate demand to start a recession? How does the aggregate demand multiplier influence a recession? is the most common source of recession. According to the mainstream theory of the business cycle, a decrease in The most likely component...
Please use the following to answer the questions
a. Mainstream View
b. Monetarist View
c. Real Business Cycle Theory
d. self-correction view
33. The significant increase in oil prices during the late 1970s and early 1980s created a reduction in labor productivity that had long-term effects on economic output and the price level, which lasted until the emergence of information and communication technology in the 1990s. 34. In 2000, the Federal Reserve raised interest rates several times. These actions are...
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