Session:13 The Neoclassical Perspective

Critical Thinking Questions

Principles of Macroeconomics 3e | Leadership Development – Micro-Learning Session

Rice University 2020 | Michael Laverty, Colorado State University Global Chris Littel, North Carolina State University| https://openstax.org/details/books/principles-macroeconomics-3e

17. If most people have rational expectations, how long will recessions last?
18. Explain why the neoclassical economists believe that the government does not need to do much about
unemployment. Do you agree or disagree? Explain.
19. Economists from all theoretical persuasions criticized the American Recovery and Reinvestment Act. The
“Stimulus Package” was arguably a Keynesian measure so why would a Keynesian economist be critical of
it? Why would neoclassical economists be critical?
20. Is it a logical contradiction to be a neoclassical Keynesian? Explain.

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