Question

Set Four [4 marks]

1. When making a crucial decision, did GLS Shackle recommend the use of scenarios to help identify the most likely scenario so that decision-makers can focus on it and make plans on this assumption? Explain why, or why not. [Limit 40 words: 2 marks]

Explanation:

2. Does Keynes argue that long-term expectations depend only waves of irrational psychology? If so, give one argument or point he uses in support. If not, state what he did argue. [Limit 40 words: 2 marks]

Explanation/answer:

Answer 1

Hi

The answer of the following question is given below as follows:

Ans.1)Yes, although technical, Shackle's work took economics into new territory, such as the importance of imagination in economic decisions to assess the plausibility of alternative results.

Ans.2) Yes, his argument was not that people could behave rationally if they just tried harder. It was that they acted irrationally because there was no alternative.

I hope I have served the purpose well.

Thanks