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Classical economics and Keynesian economics

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Compare the ideas of the Classical economists with the ideas of John Maynard Keynes, and explain what kind of revolution the Keynesian revolution was?

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Classical economics and Keynesian economics are different in one fundamental aspect: classical economists believe in the idea of the invisible hand and argue for a hands off approach of the government with regards to the economy, while Keynesian economists believe that markets deviate from the best social equilibrium every now and then, and in such a case the government should play a major role to bring the market back to normalcy.

In short classical economists believe that competitive markets are perfect in terms of the equilibrium they attain, and that the equilibrium thus attained by ...

Solution Summary

Classical economics and Keynesian economics are contrasted. The expert explains the kinds of revolution the Keynesian revolution was.

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