Macroeconomics Answers

Demonstrate that money is neutral in the long-run, but not in the short run in the Keynesian model

Explain the macroeconomic policy analysis convergence point of the classical and Keynesians

Discuss an application of the Keynesian theory of business cycles and macroeconomics stabilization.

In the 1970s and early 1980s, it seemed that Keynesian policy did not work, sparking economic policy debates. discuss

by a suitable illustration, explain Akerlof's gift exchange motive.

why would firms not reduce the wage to accommodate unemployed labor, if the real wage is a recession?

discuss the difference between unemployment in the classical and Keynesian model

Discuss the difficulties of using aggregate demand management to moderate business cycles

Following the oil price shocks of the 1970s, Keynesians concede that supply shocks can cause recessions, but it is not the main source of recessions. Discuss.

suppose that GDP is 40 billion below its potential level. It is expected that next period GDP will be 20 billion below potential and that two periods from now it will be back at its potential level. You are told that the multiplier for government spending is 2 and that the effects of the increased government spending are immediate. What policy actions can be taken to put GDP back on target each period?