Purchase Solution

Discussion on the Keynesian Critique of Classical Macroeconomics

Not what you're looking for?

Ask Custom Question

Discuss the Keynesian critique of classical macroeconomics. How does Keynesian economics depart from the policy traditions of classical economics?

Purchase this Solution

Solution Summary

The solution discusses the Keynesian critique of classical macroeconomics.

Solution Preview

Classical macroeconomics derives from the ideas of Adam Smith. A general idea of classical economics is that the economy works pretty well on its own. Smith's invisible hand is the driving force that leads self-interested individuals to create a general macroeconomic equilibrium.

This approach to economics seemed to work well until Keynes came along and tried to figure out why the great depression was lasting so long in the United Kingdom. According to classical theory, prices should adjust in a depression to 'undo' ...

Purchase this Solution


Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.