Ayushi Asked a Question
July 2, 2020 11:50 pmpts 30 pts
lt an economy is operating with significant unemployment, an increase 47. If an econ in which of the following will most likely cause employment to increase and interest rate to decrease ? (1 (2) Transfer payments (3) Government Expenditure (4) Purchase of govemment bonds by the Central Bank Increase in Reserve Requirement (1) (2) 8TTYT JI (3) (4) Which of the following is NOTa feature of New classical Economics? (1) (2) (3) It takes the assumption of adaptive expectations (4) 48. t believes that equilibrium is a normal state of affairs It is based on general equilibrium analysis (4) It talks about supply side business cycles. (1) 4 T HT FTHI HFIT (2) (3) (4)
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  • Nidhi taparia thankyou
    The correct answer of question 47 is Option (1). This is because when the central bank buys bonds in the market (what we often call Open Markets Operations or OMOs), it increases ...
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  • Nidhi taparia thankyou
    The correct answer for question 48 is option (3). This is because new classical economics assumes rational expectations, and not adaptive expectations.
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