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    Solved Why Is The New Classical Theory Associated With The Word

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    M Bilal Saleem
    The new classical theory is associated with the word "classical" because the original classical theory could not explain business cycles of ups and downs in the economy. While the policy ineffectiveness proposition of new classical theory does not eliminate the ability of policymakers to reduce unemployment, individuals may incorrectly anticipate the effects of expansionary fiscal policy, leading to changes in price levels and real GDP in the short- and long-run. New Keynesian theory holds that sticky wages and prices prevent full adjustment to anticipated demand increases.

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    Solved Why Is The New Classical Theory Associated With The Word

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    M Bilal Saleem
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    The new classical theory is associated with the word "classical" because the original classical theory could not explain business cycles of ups and downs in the economy. While the policy ineffectiveness proposition of new classical theory does not eliminate the ability of policymakers to reduce unemployment, individuals may incorrectly anticipate the effects of expansionary fiscal policy, leading to changes in price levels and real GDP in the short- and long-run. New Keynesian theory holds that sticky wages and prices prevent full adjustment to anticipated demand increases.

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    Solved Why is the New Classical Theory Associated With the Word

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    The new classical theory is associated with the word "classical" because the original classical theory could not explain business cycles of ups and downs in the economy. While the policy ineffectiveness proposition of new classical theory does not eliminate the ability of policymakers to reduce unemployment, individuals may incorrectly anticipate the effects of expansionary fiscal policy, leading to changes in price levels and real GDP in the short- and long-run. New Keynesian theory holds that sticky wages and prices prevent full adjustment to anticipated demand increases.

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    © All Rights Reserved
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    10 views1 page

    Solved Why Is The New Classical Theory Associated With The Word

    Uploaded by

    M Bilal Saleem
    The new classical theory is associated with the word "classical" because the original classical theory could not explain business cycles of ups and downs in the economy. While the policy ineffectiveness proposition of new classical theory does not eliminate the ability of policymakers to reduce unemployment, individuals may incorrectly anticipate the effects of expansionary fiscal policy, leading to changes in price levels and real GDP in the short- and long-run. New Keynesian theory holds that sticky wages and prices prevent full adjustment to anticipated demand increases.

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    (SOLVED) Why is the new classical theory associated with

    the word
    Why is the new classical theory associated with the word Why is the new classical theory
    associated with the word “classical”? Why has it been said that classical theory failed where
    new classical theory succeeds, —-because the former could not explain the business cycle (the
    ups and downs of the […]

    The policy ineffectiveness proposition connected with new classical theory does The policy
    ineffectiveness proposition (connected with new classical theory) does not eliminate
    policymakers’ ability to reduce unemployment through aggregate demand-increasing policies,
    because they can always increase aggregate demand by more than the public expects. What
    might be the weak point […]

    Suppose the government undertakes an expansionary fiscal policy measure that Suppose the
    government undertakes an expansionary fiscal policy measure that raises aggregate demand,
    but individuals incorrectly anticipate the measure (bias upward). What will the short- and long-
    run changes be in the price level and Real GDP? Suppose the government undertakes […]

    New Keynesian rational expectations theory states that inflexible wages and New Keynesian
    rational expectations theory states that inflexible wages and prices prevent the economy from
    fully adjusting to an anticipated increase in aggregate demand. 1. State the major assumptions
    of New Keynesian rational expectations theory. 2. Describe the effects predicted […]

    GET ANSWER- https://accanswer.com/downloads/page/3277/

    Adaptive expectations and rational expectations are two theories about how Adaptive
    expectations and rational expectations are two theories about how people form an expected
    inflation rate. 1. State the adaptive expectations theory. 2. State the rational expectations
    theory. Adaptive expectations and rational expectations are two theories about how

    Some economists believe that there are two Phillips curves 1 Define Some economists believe
    that there are two Phillips curves. 1. Define stagflation and explain what its existence implies. 2.
    Explain why Milton Friedman believes that a short-run Phillips curve exists. 3. Explain what can
    cause the short-run Phillips curve […]

    The Phillips curve is used to analyze the relationship between The Phillips curve is used to
    analyze the relationship between inflation and unemployment. 1. Describe the relationship that
    A. W. Phillips found between wage inflation and unemployment. 2. State the conclusion that
    policymakers drew from A. W. Philips’s curve. 3. […]

    SEE SOLUTION>> https://accanswer.com/downloads/page/3277/

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