Theory of Employment, Output, Inflation, Money and Finance-Keynesian Theory of Employment and Output (IEcoS (Economic Services) Economics Paper-2): Questions 1 - 3 of 3

Access detailed explanations (illustrated with images and videos) to 82 questions. Access all new questions we will add tracking exam-pattern and syllabus changes. Subscription can be renewed yearly absolutely FREE! View Sample Explanation or View Features.

Rs. 300.00 or

How to register?

Question number: 1

» Theory of Employment, Output, Inflation, Money and Finance » Keynesian Theory of Employment and Output

Edit

Appeared in Year: 2018

Essay Question▾

Describe in Detail

What are similarities and difference between the Keynesian and Monetarist models?

Explanation

Image of the Keynesian view and Monetarist view

Image of the Keynesian View and Monetarist View

Image of the Keynesian view and Monetarist view

  • Keynesian models emphasize the role of fiscal policy in stabilizing the economy. In particular Keynesian theory suggests that higher government spending in a recession can help enable a quick economic recovery.

    • Keynesians say it is a mistake to

… (274 more words) …

Question number: 2

» Theory of Employment, Output, Inflation, Money and Finance » Keynesian Theory of Employment and Output

Edit

Appeared in Year: 2011

Essay Question▾

Describe in Detail

What are the implications of the Phillips curve for economic policy?

Explanation

The Phillips curve has important policy implications. It suggests the extent to which monetary and fiscal policies can be used to control inflation without high levels of unemployment.

  • In other words, it provides a guideline to the authorities about the rate of inflation which can be tolerated with a given level of unemployment.

  • For this

… (200 more words) …

Question number: 3

» Theory of Employment, Output, Inflation, Money and Finance » Keynesian Theory of Employment and Output

Edit

Appeared in Year: 2015

Essay Question▾

Describe in Detail

Why is the Keynesian Range referred to as the ‘Liquidity Trap’?

Explanation

  • At a very low rate of interest, the liquidity preference becomes perfectly elastic and the speculative demand for money is infinitely elastic.
  • This portion of the curve indicates the position of absolute liquidity preference of the people. At a very low rate of interest, people will hold with them as inactive balances any amount of money they

… (170 more words) …

Developed by: