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Problem 1:
(a) What are the main assumptions behind the macroeconomic theory of New Classical Economists?
(b) Describe the Lucas Supply function and explain its policy implications?
Problem 2:
(a) Analyse the activist/non activist policy debate.
(b) What is time inconsistency in monetary policy and what are the classical solutions to this problem?
Q. Explain about Banking Cycle? An economic cycle that results from cyclical changes in the attitudes of banks toward lending risk. When economic times are good, bankers become
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Explain the how the classical school views the role of markets and government intervention in fighting business cycles The classical school believes in the smooth functioning o
explain about rent theory
Elasticities of supply and demand Other Demand Elasticities – Income elasticity of demand calculates the percentage change in quantity demanded resulting fro
causes of abnormal supply curve
Explain how Keynesian economics views the role of markets and government intervention in fighting business cycles. Keynesian economics believes markets frequently fail and gov
What happens when oil eventually runs out?? can''t we just pay doctors and nurses more money?? The unemployed should get off their backsides and get a job??
Ask quesIn your own words describe how a market would adjust in situations of: a) Excess Demand b) Excess Supply c) Equilibrium As a follow up you might think about what effects
differentiate between normative and positive statements in economics with the help of a statement
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