Important points about the classic model, Macroeconomics

Assignment Help:

Q. Important points about the classic model?

The most important points about the classic model are as following:

Monetary and fiscal policy can't affect the GDP or unemployment in classical model.
In the classical model can no nominal variables affect a real variable. Price level that is a nominal variable, for illustration, does not affect consumption, which is a real variable. It is called classic dichotomy.

Related Discussions:- Important points about the classic model

Economy could become stuck, According to Keynes, the economy could become s...

According to Keynes, the economy could become stuck at a low income level if: A. aggregate demand and aggregate supply are independent of one another. B. declines in aggregate dema

The core of macroeconomics, Suppose in the Republic of Madison that the reg...

Suppose in the Republic of Madison that the regulation of banking rested with the Madison Congress, including the determination of the reserve ratio. The Central Bank of Madison is

Estimate kilograms of lobster must he catch per day, A lobster catcher spen...

A lobster catcher spends $12 500 per month to maintain a lobster boat. He plans to catch an average of 20 days per month during lobster season. For each day, he must allow approx

Economic welfare, Which is better meausute of welfare?

Which is better meausute of welfare?

State the both overnight target rates and inflation, Overnight target rates...

Overnight target rates and inflation One of the main targets of every central bank is a low and stable inflation. It's main control variable is the overnight interest rate targ

compute the higer level-four-firm concentration ratios, (a) The four-firm ...

(a) The four-firm concentration ratios for the following industries have been found from the Economic Census for Manufacturing (NAICS 31-33) as follows. The four-firm concentration

How large is the money supply, Assume that the following data describe the ...

Assume that the following data describe the condition of the banking system: Total Reserves $200 billion Transactions Deposited $700 billion

AS/AD model, In an effort to provide tax relief for households while still ...

In an effort to provide tax relief for households while still balancing the budget, Congress votes to raise business taxes and decrease personal taxes. explain the impact of these

Trade between the two countries, Given the above trade between the two coun...

Given the above trade between the two countries, explain the trade effects on product prices, and factor incomes. Why do these effects occur?

Little evidence to support a direct causation, As it turns out, there is li...

As it turns out, there is little evidence to support a direct causation between income and children. (If I am poor, then I will decide to have a lot of children? Alternatively: I h

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages