Classical and Keynesian Economics(2/27)

Classical and Keynesian Economics(2/27)

Classical Economics

• Trickle down theory(help the rich1st, then everyone else)
• In the long run, the economy will balance at full employment output
• Invisible Hand

Keynesian Economics

• AD is the key, not AS
• In the long run, we are dead
• leaks cause recessions
• savings cause recessions

more to come when comments inquire, as this was a brief topic