Imagine an economic debate among five presidential candidates. At the time of the debate, the government announces that the economy has entered a recession. Assuming each candidate makes one statement about the economy, can you tell whether he or she is a classical or a Keynesian economist?

Question

Terrance Huerta

Business

25 August, 07:48

Imagine an economic debate among five presidential candidates. At the time of the debate, the government announces that the economy has entered a recession. Assuming each candidate makes one statement about the economy, can you tell whether he or she is a classical or a Keynesian economist?

+1

Answers (1)

Know the Answer?

Shaylee · Answer 1

Answer:The classical economist would advocate for free trade, that there should be no artificial influence on the market and that the recession period will be automatically corrected by the forces of demand and supply.

The Keynessian economist will advocate that there should be a direct influence on the market like influence greater demand in the period of recession and reducing the Consumers propensity to consume in a period of expansion.