Classical:
- Trickle Down Theory
- Help the rich first then everyone else
- In the long run, the economy will balance @ full employment output
- The Invisible Hand
Keynesian
- AD is the key, not AS
- In the long run, we are dead
- Leaks cause recessions
- AD is the key, not AS
- In the long run, we are dead
- Leaks cause recessions
Thsnks for the comparison of classical and keynesian economics. However, you excluded some very important points:
ReplyDelete-Savings = investments in classical but not in keynesian.
-Classical advocates laissez-faire style of governing, but keynesian supports an active government.
-Prices and wages are flexible downward in classical, but inflexible downward in keynesian.