Hi, I am looking for someone to write an article on role of government Paper must be at least 1000 words. Please, no plagiarized work!

Hi, I am looking for someone to write an article on role of government Paper must be at least 1000 words. Please, no plagiarized work! Treatment of recessionary gap in new classical approach: According to the new Classical approach, economists focus on the unemployment situation, which affects the economy owing to the continuous decline in the real output of the economy. In a recessionary gap situation, supply of resources in the labor market tends to increase substantially. Consequently, the wage rate declines to maintain the equilibrium position of the economy’s resources. Hence, this result in lowering wages and prices with a shift in short run Aggregate Supply (AS) curve causing recessionary gap. Accordingly, the new classical theory suggests that the economy is self-regulatory, and can achieve equilibrium i.e. stability, full employment without government interference and can eliminate the gap in a “self-corrective mechanism” (Pearson Education, “Keynes and the Classical Economists: The Early Debate on Policy Activism”). Exhibit 1: Recessionary Gap AS movements as per the new classical theory (Jain, Jain, Ohri, Majhi and Ohri 193) Treatment of recessionary gap in Keynesian approach: In contrast to the new classical theory, the Keynesian theory asserts that recessionary gap is the shift in Aggregate Demand (AD) due to low spending in an economy. Economists following the Keynesian approach suggest that the gap can be eliminated by spending more, that is by increase flow of money and capital resources within the economy, which will move the AD curve upwards (Pearson Education, “Keynes and the Classical Economists: The Early Debate on Policy Activism.”). Exhibit 2: Recessionary Gap AS movements as per the new classical theory (Jain, Jain, Ohri, Majhi and Ohri 193) The main difference between the new classical and the Keynesian theory persist in respect to their assumptions, which are directly associated with the AS-AD curve movements. As can be observed from the above discussion, the new classical theory assumes that with the increase in the unemployment rate, which indicates a fall in the demand for labors in the economy, the wage will also shrink, causing the AS curve shift downwards. However, because the economy is assumed to function in a “self-corrective manner”, it is likely that the fall in the wage rate will increase the demand for the labors and thus fortify the situation to the equilibrium position. Contradictorily, the Keynesian economists shall assume that in a recessional gap situation, if the demand for employment falls, it shall have no effect on the price and also on the supply (in the short run). It is under such circumstance that the government needs to intervene and increase demand for the resource to the equilibrium position (Baumol and Blinder 206-208). QUESTION 2 Two events supporting Classical theory: In the modern era, many economies practice the classical theory of microeconomics. Among these, China has been a significant illustration. China operates with minimum government intervention for better economic stability. For example, at the time of World War 2, China had to witness a steep fall in its employment rate, which had resulted in the downward shift of the wage rate and the AS curve.

Show more







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10