Similarities Between Classical And Classical Economics

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Macroeconomics have changed over the years and the developments coming from theories and philosophies put forward by the Keynesians and classical are very important. Both economic models aim to achieve an equilibrium economy from different views and this is important for us to understand the differences and similarities. The main difference between Keynesians and classical economics is the role played by government. Keynesians strongly believe that economy perform better with government intervention whereas classical believe that limited government intervention will make the economy better. Keynesians economics founded by John Mynard Keynes who was an English economist and believed that market forces without government intervention led to…show more content…
In classical economics, they believe that if trade unions had less power over wages, flexibility in wages will allow free market to operate and promote supply side economics enabling long term economic growth. Keynesians don’t agree to this and say supply side economics may not always work since the supply side economics can’t deal with issues such as lack of demand. Although the two economic models are so different, they have some similarities. They both agree and believe in free market although Keynesians say government should always regulate. The fact that classical economist believes in monetary policies, that means that they agree and believe in some sort of government intervention in economic business. The two models all target to achieve economic growth and reduce unemployment as well as achieve economic stability. Keynesians say that they don’t disagree with supply side economics and say that the supply side economics does not always work meaning that it’s one of the areas where the two models are
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