Classical economist:
Focuses on AS, markets will direct economy to full employment and equilibrium at full capacity by flexible wages and prices, similar to AS/AD model
Monetarist
Unpredictable changes in monetary policy are the primary cause of deviation from full employment GDP. Suggest steady predicatable increase in the money supply and low mariginal tax rates to keep prices stable and to maximize real GPD growth.
Keynesian economics:
Fluctuations in aggregate demand are the source of economic disturbance. Resource prices and wages are inflexible in the downward direction. Business cycle-driven by demand-side factors.
Unemployment is resulted from aggregage demand and spending. This causes friction and does not allow the economy to grow at its full potential. The government can help the economy by boosting demand. (fiscal policy – tax and spending, but NOT monetary policy)
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