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  • Today we will learn about two kinds of economic theories
  • At the end, we will choose one that favors the majority
  • First lets hear what Mr.Keynes has to say about the keynesian
  • I as john keynes, with keynesian theory is that in the government should be involved in order to prosper.(Government spending.)
  • gov spending will attract consumerspending wich will increase our GDPr 
  • My classical theory does not want any gov. intervention since everything will sort itself out with the invisible hand.
  • gov spending is not a market force our supplies on gdp will eventually create money and the laissez-faire approach is more acceptable for our economy. 
  • But those higher levels cause money velocity which causes inflation. 
  • With the classical theory we have less chance of inflation
  • We have decided the keynesian theory is a better choice on our economy.
  • We will fall in recession again if we think the invisible hand will help.
  • it is time to choose!
  • The keynesian will give us higher employment levels.
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