Chapter 26: The Neoclassical Perspective
Q.4
Page 642
Summarize the Keynesian and Neoclassical models.
Q.5
Page 642
Does neoclassical economics focus on the long term or the short term? Explain your answer.
Q.6
Page 642
Does neoclassical economics view prices and wages as sticky or flexible? Why?
Q.7
Page 642
What shape is the long-run aggregate supply curve? Why does it have this shape?
Q.8
Page 642
What is the difference between rational expectations and adaptive expectations?
Q.9
Page 642
A neoclassical economist and a Keynesian economist are studying the economy of Vineland. It appears that Vineland is beginning to experience a mild recession with a decrease in aggregate demand. Which of these two economists would likely advocate that the government of Vineland take active measures to reverse this decline in aggregate demand? Why?
