This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Describe and explain the policy irrelevance proposition. What will be an ideal ... (Read 80 times)

swpotter12

  • Hero Member
  • *****
  • Posts: 527
on: Jun 30, 2018
Describe and explain the policy irrelevance proposition.
 
  What will be an ideal response?

Question 2

Name two policies that a Keynesian economist would advocate to influence the level of GDP in the short run.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jonathanballen97

  • Sr. Member
  • ****
  • Posts: 347
Reply #1 on: Jun 30, 2018
Answer to Question 1

The policy irrelevance proposition is the conclusion that policy actions have no real effects in the short run if the policy actions were anticipated and none in the long run even if the policy actions were unanticipated. The conclusion comes from rational expectations hypothesis. Prices and wages are assumed to be flexible and people form their expectations on a rational basis.

Answer to Question 2

changes in taxes and spending


swpotter12

  • Member
  • Posts: 527
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

mochi09

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

Illness; diuretics; laxative abuse; hot weather; exercise; sweating; caffeine; alcoholic beverages; starvation diets; inadequate carbohydrate consumption; and diets high in protein, salt, or fiber can cause people to become dehydrated.

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

Between 1999 and 2012, American adults with high total cholesterol decreased from 18.3% to 12.9%

Did you know?

The human body produces and destroys 15 million blood cells every second.

The following terms describe types of body movement that occur at the diarthrotic joints The following terms describe types of body movement that occur at the diarthrotic joints
In 2009, historian Woody Holton described how Abigail Adams shrewdly invested in the Continental Con In 2009, historian Woody Holton described how Abigail Adams shrewdly invested in the Continental Con
Cultures Ideal Body Types Cultures Ideal Body Types
Food policy can drive the food industry Food policy can drive the food industry
Please fully explain the answer with steps Please fully explain the answer with steps
Describe the Conceptual Forecasting Framework in your own words. Describe the Conceptual Forecasting Framework in your own words.
Video: Interview with an Anorexic Woman (Part 2 of 2)

For a complete list of videos, visit our video library