Hayek says that markets will heal themselves and that government should not intervene. How does the AD-AS model reflect Hayek’s idea that governments cannot increase real GDP beyond the level that the free market economy is able to produce? Do you believe that the Hayek’s classical AD-AS model explain the factors that cause changes (shifts) in AS realistically? Why or why not?Extracted text: The Classical AS curve Price Level AS et p1 AD1 AD Yf National income Copyright: www.economicsonline.co.uk (real GDP) P.

Hayek says that markets will heal themselves and that government should not intervene. How does the AD-AS model reflect Hayek’s idea that governments cannot increase real GDP beyond the level that the...

Hayek says that markets will heal themselves and that government should not intervene. How does the AD-AS model reflect Hayek’s idea that governments cannot increase real GDP beyond the level that the free market economy is able to produce?

Do you believe that the Hayek’s classical AD-AS model explain the factors that cause changes (shifts) in AS realistically? Why or why not?

Extracted text: The Classical AS curve Price Level AS et p1 AD1 AD Yf National income Copyright: www.economicsonline.co.uk (real GDP) P.

Jun 07, 2022