Project #68543 - Macroeconomics

1.       Answer the following questions briefly but clearly. If you use graphical analysis make sure that you clearly lable the axes, curves and equilibrium points in your diagrams.

(a)    What is the IS curve? Make sure you explain whether it is a behavioral equation or an equilibrium condition.

(b)   What is the LM curve? Make sure you explain whether it is a behavioral equation or an equilibrium condition.

(c)    How does a change in government expenditures affect the IS curve?

(d)   How does a change in government expenditures affect the LM curve?

 

 

2.       In the 1980s many central banks tried to follow Monetarist money supply rules. Explain what these policies are, what their theoretical foundations are and what problems central banks encountered when implementing monetarist policies. 

 

1.       Write a short essay around 200 words discussing the rise of new classical macroeconomics after 1970. Give an overview of the emerging new classical schools of thoughts, their essential theoretical arguments and their main disagreements with Keynesian economics.  

 

 

 

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Due By (Pacific Time) 04/27/2015 10:00 am
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