Classical economists propose for ending recession

Assignment Help Business Economics

Reference no: EM131244496

Classical economists believed in Say's Law -- supply creates its own demand. On the other hand, Keynesians do not believe supply creates its own demand.

Why don't Keynesians believe supply creates its own demand?

If your workplace produced a supply of their products/services, would this supply create its own demand? Why or why not? Please use specific real-world examples.

What remedies would Classical economists propose for ending a recession?

What remedies would Keynesian economists propose for ending a recession?

Also, explain why Classical and Keynesian theory differs regarding the remedies for recessions

Reference no: EM131244496

Questions Cloud

Discuss whether you believe active or passive fiscal policy : Discuss whether you believe active or passive fiscal policy is best for the economy. Support your answer with a discussion of the advantages and disadvantages of active and passive fiscal policies that were covered in our text and with historical sta..

What factors determine effectiveness of five-step process : To counteract an economic contraction, the Federal Reserve (the Fed) often attempts to stimulate the economy by reducing interest rates. Describe the five-step process that starts with an increase in the money supply and ends with an increase in GDP...

Define and describe the three functions of money : Define and describe the three functions of money. Provide real-world examples of each of the three functions of money. Be sure these examples are related to either your personal or your workplace's experiences with money.

Define and explain the crowding-out and crowding-in effects : Define and explain the crowding-out and crowding-in effects. How do budget surpluses and budget deficits affect the consumption and investment components of GDP?

Classical economists propose for ending recession : Classical economists believed in Say's Law -- supply creates its own demand. On the other hand, Keynesians do not believe supply creates its own demand. Why don't Keynesians believe supply creates its own demand? What remedies would Classical economi..

Define the terms potential output-expansionary gap : Define the terms potential output, expansionary gap, and contractionary gap. Why might actual output exceed potential output (an expansionary gap)? Why might actual output be lower than potential output (a contractionary gap)?

What recent evidence about medicare advantage : What recent evidence about Medicare Advantage HMOs can you find? Are they growing? Are they saving money? Do enrollees seem to like the care they get? Is the quality of care good?

Confirms or refutes hypothesis is described as what activity : Concerning the research process, the step which involves deciding if the data confirms or refutes the hypothesis is described as what activity? Refer to the methods of social science and the steps in the sociological research process to answer the qu..

What is the basic idea of balanced budget fiscal policy : Suppose you are being interviewed by Business Think. You're asked to explain the concept of a balanced budget multiplier: What is the basic idea of a balanced budget fiscal policy?

User Account

All Pages