Come on John, my theory is obviously better, the government should have no say in economics!
I just don't know Adam, I feel like the government should be supporting our economic ways.
Do I really have to explain, why my theory is better? Come on John, they don't call me the father of economics for no reason.
Its not that Adam! I truly believe the Government should have a part in what the country does. Let's have a child pick which theory is better.
Child, here's why classical theory is better. First of all the economy is always close to, or right on full employment, so that means output will always produce demand, therefore the economy will self-adjust itself to the full employment-no need for government at all.
But the economy isn't always at full-employment, and demand is what creates output not the other way around. The flexibility of prices and wages cannot be relied on to adjust economy, so that's the part of government role. To readjust the economy the government can apply fiscal policies.
Supports like David Ricardo, and Alfred Marshall agrees with the classical theory, so child, join the side where economy fixes itself.
Join the side where John Hicks and even president Ronald Reagan recognized my theory that government has an active role in the economy.
Umm I guess I pick the Keynesian theory because it's true that the economy isn't always at full employment, and to fix that should be the government. It's like if a glass is broken we should clean it up-it doesn't clean itself.
Oh John, maybe my ways are simply outdated, one day they'll be back!
Looks like I'm the new father of economics Adam, the right choice always prevails
Explore Our Articles and Examples
Try Our Other Websites!
Photos for Class
– Search for School-Safe, Creative Commons Photos (It Even Cites for You!
– Easily Make and Share Great-Looking Rubrics
– Create Custom Nursery Art