worksheet3 - Introduction to Macroeconomics, Econ 104a,c,d-...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Introduction to Macroeconomics, Econ 104a,c,d- Spring 2012 Worksheet 3– Classical Model, Keynesian Consumption due 2/17 in Discussion Section or uploaded to moodle 1. What was the Classical Model answer to the Great Depression? The Classical Model answer to the Great Depression was to lower interest rates and to encourage the government to spend more money. 2. Who is John Maynard Keynes? John Maynard Keynes was a British economist whose ideas revolutionized the theory and practice of modern macroeconomics, as well as the economic policies of governments. Keynes believed that the government should be in control of the economy and should prevent economic depressions and recessions. 3. What is equilibrium to Classical Economists? What is different about it for Keynes? Equilibrium is when wages, interest rates, and prices adjust so that the quantity demanded is equal to the quantity supplied. To Classical Economists, equilibrium is when there is full employment. To Keynes, full employment did not play a role in equilibrium and that the
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

worksheet3 - Introduction to Macroeconomics, Econ 104a,c,d-...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online