We did not discuss in lecture developments in modern macroeconomics after Keynes. This is covered succinctly by John Cassidy in the attached chapter. In the 1970s Keynes fell out of favor because it was hard for the Keynesian model to explain inflation and unemployment at the same time. Milton Friedman introduced the monetarist explanation which posited that the Fed made mistakes that caused recessions. Lucas introduced rational expectations which posited that Fed mistakes shouldn’t matter because people will anticipate these mistakes. So what’s left? The new classicals, or the real business cycle theory, says that unemployment is voluntary. The economy is always in equilibrium or moving toward it, periods of unemployment occur because people voluntarily choose leisure time. What do you think about this theory? People shouldn’t complain about unemployment if its voluntary? Do they? What about in the pandemic does that change things?For more information on the Keynesian model check on this:https://en.wikipedia.org/wiki/Keynesian_economics
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more