Compare and contrast the Keynesian perspective from the neoclassical perspective. Identify and discuss the main assumptions in each perspective.
1. Compare and contrast the Keynesian perspective from the neoclassical perspective.
a. Identify and discuss the main assumptions in each perspective.
b. Explain how these assumptions lead to different conclusions about the effectiveness of fiscal and monetary policy in the short run and the long run.
c. Identify the AD/AS and the Phillips Curve models that would be most appropriate for each perspective.
d. If you were asked to identify whether a policy maker took more of a Keynesian approach or whether she took more of a neoclassical approach, what information would you need to answer that question?
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