Question

Please read the following and submit a minimum 150 word commentary at title link above: In your own words, summarize the general philosophies of any two of the following famous economists: John Maynard Keynes, Milton Friedman, Adam Smith, Karl Marx, John Stuart Mills, Friedrich Hayek.

Answer 1

The philosophies of Professor J M Keynes focused on the aggregate demand and aggregate supply in the economy.

Aggregate demand and aggregate supply is a concept which is related to total demand and total supply of all the sectors in an economy it includes household Sector Investment Government and rest of the world.

Professor j m keynes also provided the concept of full employment and unemployment equilibrium in the economy this concept really helpful in the determination of inflationary gap and deflationary gap in the economy the concept of consumption function and saving function which is related to propensity to consume and propensity to save is also related with the philosophy is of JM keynes.

The primary tools recommended by J m.keynes fiscal and monetary policies to control the inflation and deflation in the economy.

Inflationary gap is the gap between actual aggregate demand and aggregate demand required at full employment equilibrium level here actual aggregate demand is more than the aggregate demand required at the full employment equilibrium level and in the deflationary gap the actual aggregate demand is less than the aggregate demand required the full employment equilibrium level this type of Concept is provided by professor j m keynes.

2. The philosophies given by professor Adam Smith are as follows.

Adam Smith is called as the father of economics because the contribution of Adam Smith is very important in the field of wealth economics.

The concept of Adam Smith is related with revenue and the resources in the economy.

The concept of Adam Smith reflected the principle of equality and the values that is completely based on the equal distribution of wealth among the factors.

The quality is the main base of Adam Smith because according to him the growth of the nation is not based on the growth of the GDP it is based on the Welfare of the people and the equal distribution of wealth among the people of the nation.