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Economics Keynesian Classical

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...say about why the economy is experiencing high unemployment and what the government should do about it and what policies would each advocate.
The classical or neoclassical economist believes that there is full employment equilibrium only if the economy is left to its own devices (Biz/ed, Classical, 2005). The Keynesian, by contrast, would advocate government intervention founded on the belief that it is the government's job to smooth out the bumps and potholes of the market (Biz/ed, Keynesians Beliefs, 2005).
Thus, the policies the Classical economist would advocate is simply non-intervention (Biz/ed, Classical, 2005) while the Keynesian economist would advocate policies that would manage the level of demand in the market (Biz/ed, Keynesians, 2005; Biz/ed,), i.e., demand-management policies (Biz/ed, Keynesians, 2005). Classical economists believe it would be prices would be adjusted and this would restore the balance (Biz/ed, Classical, 2005). They also believe that if wages were adjusted downward,...

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