Question

1. Paul Krugman is a: monetarist economist. real business cycle economist. rational expectations economist. supply-side economist. Keynesian economist.

2. The (original) Keynesian primary policy for a recession is: increasing money supply/decreasing interest rates. decreasing the money supply/increasing interest rates. increasing government spending/cutting taxes. increasing government spending/increasing money supply. increasing government spending/raising taxes.

3. The original classical school dominated macro economic thinking: 1800s to 1933. 1759-1793. 1997-2017. 1933-1980.

Answer 1

1.Paul Krugman is a real business cycle economist.

Paul Krugman, an American economist and journalist won the Nobel Prize in 2008 in Economics, for economic geography and in identifying international trade patterns.

2.The (original) Keynesian primary policy for a recession is: increasing government spending/ cutting taxes

John Maynard Keynes, British economist advocated increased government spending and lowering taxes that would stimulate demand in the economy, which would pull the economy out of depression. He developed this theory in the context of Great Depression of 1930s, and published in his book, "The General Theory of Employment, Interest and Money".

3. The original classical school dominated macro economic thinking : 1800s to 1933

The classical school of thought originated with the publication of "Wealth of Nations", by Adam Smith. This thought originated in Britain and the main economists were Adam Smith, J.B Say, J.S Mill, David Ricardo and Thomas Robert Malthus. Classical school started to flourish in the late 18th century and started declining with the Great Depression in 1930-33.