Chapter 11: Q.58 (page 293)
Are Say’s law and Keynes’ law necessarily mutually exclusive?
Short Answer
Say's law and Keynesian law aren't mutually exclusive, but they apply to distinct periods of time.
Chapter 11: Q.58 (page 293)
Are Say’s law and Keynes’ law necessarily mutually exclusive?
Say's law and Keynesian law aren't mutually exclusive, but they apply to distinct periods of time.
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Get started for freeHow is recession illustrated in an AD/AS model?
What is the intermediate zone of the SRAS curve? Will a rise in output be accompanied by a rise or a fall in the price level in this zone?
Suppose concerns about the size of the federal budget deficit lead the U.S. Congress to cut all funding for research and development for ten years. Assuming this has an impact on technology growth, what does the AD/AS model predict would be the likely effect on equilibrium GDP and the price level?
How is cyclical unemployment illustrated in an AD/AS model?
How would a dramatic increase in the value of the stock market shift the AD curve? What effect would the shift have on the equilibrium level of GDP and the price level?
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