Question

Keynesian economists focus on the short run business cycle-are we going into another recession or not? If unemploymnet increases then federal unemployment benefits are paid out.

Classical economists focus on what the economic growth rate will be for the next 10 or 20 years. Are there enough incentives built into the economy to promote technological innovation and new business?

Environmentalists worry that the focus on growth-whether short term or long term increases environmental damage and climate change.

Which group would you most identify with and why?

Answer 1

Keynesian economics served as the standard economic model in the developed nations during the latter part of the Great Depression, World War II, and the post-war economic expansion (1945–1973), though it lost some influence following the oil shock and resulting stagflation of the 1970s. The advent of the global financial crisis in 2008 has caused a resurgence in Keynesian thought, and the theory remains as important today as it was nearly 100 years ago.

Environmentalists form a group who have recently emerged who see the lens of economic progress and growth through the lenses of an environment. For a long time to achieve economic growth, nature has been mindless exploited resulting in potentially catastrophic changes like scarcity of drinking water and climatic changes. Efforts of environmentalists have gone a long way in stymieing environment degradation. Classic environments are the group I mostly relate with as this group researches and makes sure there is a steady sustainable economic progress which would continue over foreseeable future taking into consideration important micro and macroeconomic factors and works on constantly monitoring health of economy and warning the market and other regulatory organizations of impending danger for organizations and economy as a whole to take remedial measures.

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