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Highlight the four major hypotheses concerning the way income influences consumer spending:
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Give brief notes on the Keynes’s criticisms the Say's law.
Date posted: April 11, 2019 . Answers (1)
Discuss the effect of tax increment according to classical economists.
Discuss the classical crowding – out effect.
Discuss the possible remedies to the unemployment problem with fixed wages.
Demonstrate the unemployment problem associated with fixed money wage and the classical policy proposal.
Using classical model explain how a shift in the supply for labor would affect equilibrium in the economy.
Discuss how shift in the demand for labor affects employment equilibrium in the economy using classical models.
Demonstrate using the classical model how an increase in the money supply, an increase in income velocity and a decrease in the transactions demand for money would affect prices, money wages and real variables
What was Pigou’s suggestion to alleviate unemployment?
Derive the demand for labor schedule.
With an aid of a diagram describe equilibrium in the classical labor market.
Suppose that everyone in the economy at every interest rate decided to save more, would this lead to unemployment?
What does Fiscal policy in macroeconomics mean?
How does microeconomics differ from macroeconomics?