Question

Are you a Classical or Keynesian economist? Pick a perspective and defend. minimum 250 words

Use sources pls

Answer 1

Solution :

I accept that i am a supporter of classical economist that believes that Keynesian model still has importance in todays economic situation . I can't support one side fully over the otber but if must i would support keynesian model . Both have a place in understanding of economics , one in short run and other in long run .The Keynesian economists believe that the economy is not always work at full employment level . It can be either below or above its potential level . Due to this point i fully support Keynesian model because it gives a practical framework for the working of economy . The impact of the economic recession of 2008 will help to understand this perspective how we succded in dealing with recession by following Keyensian model and i will take side with Keynesian over the classical . The classical model help to understand e onomy correctly in long run . For example it concludes that the economy will adjust itself without government interference in recession ,but it doesn't account for situation in the short run . It may be true that the economy will return to its normal position after recession bur there are not enough ability and resources to wait for the self correction of the economy , so it needs immediate assistance of government . As a result i must accept that classical model is not helpful in solving economic problems immediately . They focused only on long run but neglected short run . Keynes recognized the role of the state in the economic activities . According to him state must play the role of regulators and facilitators .