Question

1. Keynes' approach to explaining the macroeconomy mathematically was to ____.

	describe the behavior of the economy at the individual level by using equations that described individual behavior
	describe the economy by imagining an invisible hand that is beyond the control of humans
	describe the behavior of the economy in the aggregate by using equations that described aggregate behavior

2. Neoclassical economics is the basis for much of modern MICROeconomics and tries to explain why individuals and firms in an economy make their decisions. Two of the major assumptions in neoclassical economics are that ____.

	individuals purchase goods for the maximum amount that they would pay for those goods, and goods should be supplied by monopolists
	governments maximize bureaucracy and firms maximize democracy
	individuals maximize their utility (happiness) and firms maximize profits
	corporations are more efficient than partnerships, and members of groups tend to do what's best for the group

3. One of the biggest intellectual evolutions in the development of macroeconomics in the 20th century was the melding of Keynesian concepts with the neoclassical MICROeconomics mentioned in the previous question. What was this union of ideas called?

	the Austrian school of economics
	taco Tuesday
	the neoclassical synthesis
	Keynesianism
	the meeting of the minds

4. Paul Samuelson was an MIT professor who emphasized the importance of mathematical rigor when teaching macroeconomics and economics in general. In this way, he and others were extremely important in developing economic thought not just as a philosophical subject but as a science. He emphasized the importance of mathematical economics (the subfield of economics that involves all of the math used in economics) to the economist. What school of economic thought is he generally placed in?

	New Keynesian
	Post-Keynesian
	Monetarist
	Neo-Keynesian

5. The Neo-Keynesian economists were the mainstream economists in the 1950s and 1960s. They taught the Phillips curve. William Phillips originally observed the negative correlation of inflation and the unemployment rate, but Phillips himself did not propose that there was a particular relationship between inflation and unemployment. Which prominent monetarist proposed that the Phillips curve only held in the short run and could break down in the long run?

	Adam Smith
	John Maynard Keynes
	Leon Walras
	Milton Friedman
	Tyler Perry

6. Monetarists subscribe to the quantity theory of money, which is variously stated as MV=PY or MV=PQ, where M is the amount of money in a country, V the rate at which money is turned over in an economy (i.e. how many times the same dollar is spent in a year), P prices and Y or Q the amount of real production or real income. One conclusion from this is that if V and Y (or Q) are constant, then any increase in the money supply just results in higher prices. Which 16th century Polish astronomer initially observed this phenomenon?

	Isaac Newton
	Johannes Kepler
	Copernicus
	Neil deGrasse Tyson
	Galileo

7. Just as predicted, the Phillips Curve collapsed (the relationship between inflation and the unemployment rate changed after governments tried to develop policies to exploit that relationship - i.e. lowering unemployment by creating inflation). Economist Robert Lucas then wrote what later became known as the "Lucas critique," in which he stated that just because a aggregate relationship was observed to exist doesn't mean governments should create policy to exploit that relationship. This led to a revolution in macroeconomics that broke away from Neo-Keynesianism and sought to add microfoundations to macroeconomics. What are microfoundations?

	assuming that governments are led by benevolent dictators that redistribute wealth in the most efficient manner possible
	trying to write simple equations that explain macroeconomic behavior
	ignoring the behaviors of individuals and assuming that everything unfolds according to an invisible hand
	making sure the behaviors of agents in an economic system can be explained by sound microeconomics before aggregating their behavior to the macro level

Answer 1

Answer 1: Keynes' approach to explaining the macroeconomy mathematically was to describe the behavior of the economy in the aggregate by using equations that described aggregate behavior.

He used the terms in aggregate because according to his thoughts, the words "function" and "curve" was completely misapplied. Though his theory was based on individual behaviour, but mathematically he used tems "Aggregate supply" and "aggregate Demand".

--------------------------------------------------------------------------------------------------------------------------

Answer 2: Neoclassical economics is the basis for much of modern Microeconomics and tries to explain why individuals and firms in an economy make their decisions. Two of the major assumptions in neoclassical economics are that individuals maximize their utility (happiness) and firms maximize profits.

Neoclassical economics theory focuses on supply and demand which are considered to be the main driving forces behind the production, valuation or pricing, and consumption of goods and services. It says that utility or the satisfaction to consumers, is the most important factor in determining the value of a product or service, not the cost of production. And the firms can set their price margins and maximize profits by selling such items.

------------------------------------------------------------------------------------------------------------------------

Answer 3: One of the biggest intellectual evolutions in the development of macroeconomics in the 20th century was the melding of Keynesian concepts with the neoclassical Microeconomics mentioned in the previous question. What was this union of ideas called the neoclassical synthesis?

It was also called the neoclassical–Keynesian synthesis. After the world war 2, there was an academic movement in the field of economics that worked towards absorbing or inputting the macroeconomic thoughts of Keynes into neoclassical economics.

---------------------------------------------------------------------------------------------------------------------------------

Answer 4: Paul Samuelson was an MIT professor who emphasized the importance of mathematical rigor when teaching macroeconomics and economics in general. In this way, he and others were extremely important in developing economic thought not just as a philosophical subject but as a science. He emphasized the importance of mathematical economics (the subfield of economics that involves all of the math used in economics) to the economist. What school of economic thought is he generally placed in?

Neo-Keynesian: Paul Samuelson was one of the founders of Neo-Keynesian economics and a noble prize winner for his work. He incorporated Keynesian and Neoclassical principles.

---------------------------------------------------------------------------------------------------------------------

As per the guidelines 4 subparts have been answered. kindly hit the 'like' button, if you are satisfied with the answer.

Though I am writing the answers of other questions also.

----------------------------------------------------------------------------------------------------------------------

Answer 5:  Milton Friedman, monetarists, argued, In the long run, price changes will have no impact on the unemployment rate, because the unemployment rate will equal its “natural” rate such that price and wage decisions are consistent.

------------------------------------------------------------------------------------------------

Answer 6:  Copernicus: Nicolas Copernicus was the first person to set forth clearly the "quantity theory of money," It states that the prices vary directly with the supply of money in the society.

------------------------------------------------------------------------------------------------------------------------------