Policies will affect unemployment in neoclassical model

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Reference no: EM131101333

Explain how each of the following events or policies will affect unemployment in a neoclassical model:

tax cut for consumers

a rise in business confidence that increases investment

a fall in export sales to a major trading partner

a rise in income levels for consumers throughout the economy

cheaper imported products

a fall in government spending

What’s the difference between how a Keynesian economist would sketch an AS curve and a Phillips curve, and how a neoclassical economist would sketch an AS curve and a Phillips curve? How is the shape of the different AS curves linked to the different shape of the Phillips curves?

Reference no: EM131101333

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