DP Economics Questionbank

Calculate the total welfare loss resulting from the imposition of the tariff on chia seeds.

Examine why, in contrast to the monetarist/new classical model, the economy will not automatically return to the full employment level of output in the Keynesian model.

Using the monetarist/new classical model and the Keynesian model, discuss the view that increases in aggregate demand will inevitably be inflationary.

Discuss the view that economies will always return to the full employment level of output in the long run.

Calculate the total welfare loss resulting from the imposition of the tariff on chia seeds.

Examine why, in contrast to the monetarist/new classical model, the economy will not automatically return to the full employment level of output in the Keynesian model.

Explain how a deflationary gap might occur.

Using the monetarist/new classical model and the Keynesian model, discuss the view that increases in aggregate demand will inevitably be inflationary.

Calculate the total welfare loss resulting from the imposition of the tariff on chia seeds.