Chapter 1: Q. 15 (page 25)
How did John Maynard Keynes define economics?
Short Answer
Keynes defined economics as a way of seeing world in models and applying the relevant models to the real world.
Chapter 1: Q. 15 (page 25)
How did John Maynard Keynes define economics?
Keynes defined economics as a way of seeing world in models and applying the relevant models to the real world.
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Why might Belgium, France, Italy, and Sweden have a higher export to GDP ratio than the United States?
Suppose you have a team of two workers: one is a baker and one is a chef. Explain why the kitchen can produce more meals in a given period of time if each worker specializes in what they do best than if each worker tries to do everything from appetizer to dessert.
Suppose, as an economist, you are asked to analyze
an issue unlike anything you have ever done before.
Also, suppose you do not have a specific model for
analyzing that issue. What should you do? Hint: What
would a carpenter do in a similar situation?
Suppose we extend the circular flow model to add imports and exports. Copy the circular flow diagram onto a sheet of paper and then add a foreign country as a third agent. Draw a rough sketch of the flows of imports, exports, and the payments for each on your diagram.
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