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Posted: April 30th, 2021
Macro ECONOMIC Questions
Question description
Explain the concept of the “order of goods” as used by the Austrian Economists. How does this relate to the concept of “stages of production”?Explain the process of inter-temporal coordination that takes place in response to an increase of savings on the free market. In doing so, utilize the Hayekian Triangle, the loanable funds market and the PPF.What
are the consequences of an artificial lowering of the interest rate by
the central bank in the Austrian framework? How does this lead to
inter-temporal dis-coordination? In doing so, utilize the Hayekian
Triangle, the loanable funds market and the PPF.When
the cluster of entrepreneurial errors that result from an artificial
lowering of the interest rate are revealed, what, according to the
Austrian School, is the best policy response to minimize the length of
the recession that will follow?How does this policy
response differ from those advanced by the Keynesians? What are the
theoretical differences that drive these differing policy
recommendations?what is Say’s Law?
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