basically, its the opposite of laissez-faire. it says that the government should intervene in the depressed economy in order to jump-start it. the theory behind it is that when a depression happens,...
During the 80's the massive tax cuts in the U.S lead to a rise in interest rate and have no effect on private savings as opposed to what the neo classical economics have predicted.
Classical economics is more of a right wing take on the economy. The essential belief behind it is that markets will sort out themselves when in trouble. Classical economists don't believe that...
Classical Theory: Government has minimal role in the economy, and the macro-economy is self adjusting; meaning consumers and businesses will correct any problems with the economy automatically over...