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- Why Keynesian economics become popular back in 1930’s. Do you think that during 2005-08 financial crisis, Keynesian 1930 solution work for the economy? Explain your answerWhat is the effect of a termpoary increase in productivity in the Keynesian model, with sticky prices?Write an equation that expresses the Keynesian production function as depicted by the business cycle
- Notice the major differences between our Keynesian Cross (in your chapter 9 appendix) and the Macro Equilibrium (AS and AD) diagram? Which model has more to offer in which situations?Some of the practical problems relating to implementing expansionary Keynesian policy relate to lags. What are these lags and why are they problematic? It’s crucial to use some sort of example. Why would a Keynesian policy response not make much sense in response to a minor recession like the one that occurred in 1990? Please make response as simple as possible.
- What is the philosophical, economic essence of Keynesian doctrine or “Keynesianism” that emerged from the experience and attempted explanations of the Great Depression ? What would all Keynesians believe, in order to be “Keynesian?”Explain any two criticism of Keynesian theoryExplain the principles of the new keynesian stabilisation policies in the case of a positive output gap?
