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Difference between rational expectations and adaptive expect

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Reference no: EM13882376

Unit 1

In your view, is the economy currently operating in the Keynesian, intermediate, or neoclassical portion of the economy's aggregate supply curve? Explain.

2. If households decide to save a larger portion of their income, what effect would this have on the output, employment, and price level in the short run? What about the long run?

Unit 2

What is a recession? How is it defined? If Keynes were alive today, how do you think he would advise President Obama to move the U.S. economy out of a recession? What would be your advice?

Unit 3

1. What is the difference between rational expectations and adaptive expectorations?

2. Explain why neoclassical economists believe that nothing much needs to be done about unemployment. Do you agree or disagree? Explain.

Reference no: EM13882376

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