Classical Economics Discussion

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Economics

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During Week 2 or earlier, the instructor assigns students to one of two groups: the classical school (including its later development such as monetarism, Austrian economics, supply-side economics, new classical economics)and the Keynesian school (including its later development, new Keynesian economics). Then, the two groups (or four to include two classical groups and two Keynesian groups, depending on the number of students with about seven or eight students per group) discuss classical economics and Keynesian economics, defending their school and criticizing the other school’s theories and practices. In your responses,

  • Compare and contrast classical economics and Keynesian economics. What are the major differences between them?
  • Which model would you prefer? You may already prefer one because you are defending your school. Thoroughly explain your reasoning.
  • As a classical economist or a Keynesian economist, what would you do for the current U.S. economy?

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Attached.

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Running Head: ECONOMIC THEORIES

Economic Theories
Student Name
Institutional Affiliation

ECONOMIC THEORIES

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Question one
The Classical economics is a school of thought held by Adam Smith and John Stuart Mill, which
advances the idea that the economy is always capable of achieving the level of real GDP, which is
obtained when the economy’s resources are fully employed. In addition, it I associated with the
idea tha...


Anonymous
This is great! Exactly what I wanted.

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