Chapter 24: Q 18. (page 601)
Do neoclassical economists believe in Keynes’ law or Say’s law?
Short Answer
They believe in say's law.
Chapter 24: Q 18. (page 601)
Do neoclassical economists believe in Keynes’ law or Say’s law?
They believe in say's law.
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Get started for freeSuppose Mexico, one of our largest trading partners and purchaser of a large number of our exports, goes into a recession. Use the AD/AS model to determine the likely impact on our equilibrium GDP and price level.
How would a dramatic increase in the value of the stock market shift the AD curve? What effect would the shift have on the equilibrium level of GDP and the price level?
Briefly explain the reason for the near-vertical shape of the SRAS curve on its far right.
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