Reference no: EM131193689
1. How did Keynes use marginal methodology to explain depression and market failure?
a. Discuss how Keynes used neoclassical theories on market clearing to explain depression.
b. Explain how Keynes saw money differently than his marginalist predecessors.
(hint: Explain Keynes's liquidity preferences.)
2. In what aspects that Veblen provided an alternative theory to economics?
a. Explain Veblen's evolutionary methodology?
b. What are Veblen tools to explain his theory?
3. What are the linkages between marginal productivity and capital?
a. Use Clark argument to explain the linkages
b. Explain how Bohm-Bawerk identify interest rate independently out of price?
(hint: Roundaboutness method; Time preferences)
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Marginal methodology to explain depression-market failure
: How did Keynes use marginal methodology to explain depression and market failure? Discuss how Keynes used neoclassical theories on market clearing to explain depression. In what aspects that Veblen provided an alternative theory to economics?
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