Asked by Haley Smith on Jul 02, 2024
The classical economists
A) dominated economic thought until the Great Depression.
B) believed that supply creates its own demand.
C) believed that any money saved will be invested.
D) believed that the economy was always tending toward full employment.
E) All of the statements are true of classical economists.
Classical Economists
were early economic thinkers of the 18th and 19th centuries who believed in the power of free markets to regulate themselves through the laws of supply and demand.
Great Depression
A severe worldwide economic downturn that took place during the 1930s, marked by widespread unemployment, deflation, and a significant decline in economic activity.
Full Employment
An economic scenario where every available workforce is employed in the most financially efficient method.
- Gain an understanding of the conceptual discrepancies between classical economics and Keynesian economics.
- Acquire knowledge on the fundamentals of supply and demand as depicted by Say’s Law, and compare this understanding with the Keynesian economic theories.
Learning Objectives
- Gain an understanding of the conceptual discrepancies between classical economics and Keynesian economics.
- Acquire knowledge on the fundamentals of supply and demand as depicted by Say’s Law, and compare this understanding with the Keynesian economic theories.