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Q.1 Describe the major economic ideas of at least two of the schools of economic thought that were described in the class. Be sure to include:
a) a general description of the schoolb) at least one major economist belonging to that schoolc) at least two specific ideas that belong to that schoold) your informed view or analysis of the school's beliefs
Q.2 Explain the impact which fluctuations in exchange rates can have on the balance of trade. Be specific in your answer.
Words Limit: 800 Words
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Classical school of economic thought: Classical economics is the first school of economic thought believed to be developed in the late 18th century. Famous economists belonging to this school of thought were Adam Smith and John Stuart Mill. Classical school of economics believed that markets work best when they are left alone and the interference of the government should be kept to a minimum. Adam Smith laid the foundation of the Classical value theory. According to the value theory, the economic value of any good or service is determined by the labor required to produce it (Moscati, 2013). It does not take into account the pleasure ....
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