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Questions: What is the best approach to managing the economy, supply-side or demand-side economics?
There are two schools of thought on how to managing the economy. The first is demand-side economics which also the Keynesian approach. This approach maintains that the demand for products and services drives the economy as such economic policies should focus on the aggregate demand curve. The other approach is called supply-side economics or more popularly referred to as Reaganomics. In this trickle-down approach, it is postulated that the production of goods and services is what drives the economy with the focus on the aggregate supply curve. Both fiscal and monetary policies have the potential to stimulate change in either the aggregated demand or the aggregate supply curves.
In your initial post defend which approach should be used to (ensure to include in your subject line, which approach you are defending):
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You have a good description of the factors that affect the supply curve but your description of demand is a bit sparse and confusing. Can you clarify a bit more about demand similarly to how you did with supply?
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