Critical Thinking Questions
If most people have rational expectations, how long will recessions last?
Explain why the neoclassical economists believe that nothing much needs to be done about unemployment. Do you agree or disagree? Explain.
The American Recovery and Reinvestment Act was criticized by economists from all theoretical persuasions. This stimulus package was arguably a Keynesian measure so why would a Keynesian economist be critical of it? Why would neoclassical economists be critical?
Is it a logical contradiction to be a neoclassical Keynesian? Explain.