Thursday, March 3, 2016

Classical and Keynesian Schools

February 24, 2016

Classical school

  • competition is good
  • believe in the indivisible hand
  • economy will balance at full employment
  • economy is always to or at full employment
  • trickle down effect


Keynesian school

  • competition is flawed
  • AD is the key NOT AS
  • leaks and savings cause recessions
  • ratchet effects and sticky, wages bucks say's law
  • in the long-run we are dead


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