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Q Short Answer Questions. Please address the following questions. Total page requirement is 4 pages. Times New Roman. Font 12.1. Suppose the economy experiences a recessionary gap. How does the new classical approach to macroeconomic policy (to eliminate the gap) differ from the Keynesian approach? Compare and contrast the classical and Keynesian views of aggregate demand and aggregate supply.2. Explain one real-world event that supports the Classical theory and Keynesian theory (two separate events for each theory).3. Do you think there are certain economic crises that require government intervention (i.e Great Depression, Auto Industry failure, etc.)? Why or why not? (There is no right or wrong answer, but be sure to support your ideas.)4. Read the case assignment readings below and answer the question below:Bernanke, Ben S. (2009) “The Crisis and the Policy Response” (speech, London School of Economics, January 13, 2009). http://www.federalreserve.gov/newsevents/speech/bernanke20090113a.htmUchitelle, Louis. (2009) “Economists Warm to Government Spending but Debate Its Form,” New York Times, January 7, 2009, p. B1. http://www.nytimes.com/2009/01/07/business/economy/07spend.html?pagewanted=all&_r=1&In dealing with the recession of 2008 why is it important for the Fed and Congress to coordinate monetary and fiscal policy measures?Additional Requirements Min Pages: 4
1. Suppose the economy experiences a recessionary gap. How does the new classical approachto macroeconomic policy (to eliminate the gap) differ from the Keynesian approach? Compareand contrast…
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