Question

1. Who is most closely related to SUPPLY-SIDE economics?

Robert Lucas

Milton Friedman

Alan Blinder

John Maynard Keynes

Arthur Laffer

2. Who is most closely related to NEW CLASSICAL economics?

Alan Blinder

Arthur Laffer

Robert Lucas

Milton Friedman

John Maynard Keynes

3. Who is most closely related to NEW KEYNESIAN economics?

Robert Lucas

Alan Blinder

Milton Friedman

Arthur Laffer

David Ricardo

4. Who is most closely associated with the notion of ABSOLUTE ADVANTAGE?

Robert Lucas

Adam Smith

Milton Friedman

David Ricardo

Alan Blinder

5. Who is most closely associated with the notion of COMPARATIVE ADVANTAGE?

Group of answer choices

David Ricardo

Robert Lucas

Adam Smith

Milton Friedman

Alan Blinder

Answer 1

Supply-side fiscal policy can be defined that policy whose aim is to improve economic growth and create jobs is by increasing the production of goods and services. This is also known as the trickle-down effect. In this taxes are lowered and government removes barriers to investment.

It means supply side economics focus on the increase in the production of goods and services. The Economists Arthur Laffer is closely associated to supply-side economics.

Hence option fifth is the correct answer.

2.

The new classical economics is a school of branch which came into existence in the 1970s at the University of Chicago and Minnesota. The economist closely associated with the economics is Robert Lucas.

Hence option third is the correct answer.

3.

The new Keynesian theory emphasizes economic growth and stability instead of full employment while according to Keynesian theory market is not able to restore naturally. The economists Alan blinder is closely associated with the new Keynesian economics.

Hence option second is the correct answer.

4.

Since absolute advantage can be defined as the ability of a party to produce a greater quantity of a goods or services compare to its rivals by using the same amount of resources.

The term absolute advantage is associated with the Economists Adam Smith.

Hence option second is the correct answer.

5.

The opportunity costs can be defined as the lost units of output of other goods for producing an additional unit of output of a good.

A country has comparative advantage in the production of that good in which it has lower opportunity cost.

The concept of comparative advantage has been given by Economists David Ricardo.

Hence option first is the correct answer.