Assignment: Response to the following discussion (minimum 1 paragraph each). Please cite all work.DISCUSSION 1:Hi class,A classical economist theory is rooted in the concept of a laissez-faire economic market. Laissez-Faire, also known as ‘free market’ and requires little to no government intervention. Also, it allows individuals to act per their self-interests regarding the economic decision made. They also use values theories that determine prices in the economic market. On the other hand, A Keynesian economist relies on the spending and aggregated demand to define the economy. They believe that aggregated demand often influences the public and private decisions (Woodruff, 2018). The point of view on government spending is different in both economists. The Keynesian believe the government spending can jumpstart economic growth during sluggish economic downturns. On the other hand, the classical economist believes that consumer spending and business investments represent the more critical parts of economic growth (Woodruff, 2018).In my opinion, and the knowledge I’ve acquired doing my research paper on government bailouts, I have to side with the Keynesian economist. Back in the last big recession, when General Motors and Chrysler were declaring bankruptcy, the government bailed those companies out enabling the creation of jobs that at the same time stimulated the economy (Amadeo, 2018). References:Amadeo, K. (2018, November 27). Was the Big 3 Auto Bailout Worth It? Retrieved February 11, 2019, from https://www.thebalance.com/auto-industry-bailout-g…Woodruff, J. (2018, June 30). Differences Between Classical & Keynesian Economics. Retrieved February 11, 2019, from https://smallbusiness.chron.com/differences-betwee…DISCUSSION 2:I believe that I am a Keynesian economist. I do not believe the economy to be self-regulating which has been proven during the 2008 recession, the government had to jump in to help by offering bailouts. At this time the economy was in a recessionary gap, and the only way to get the economy back to its normal real GDP was to increase government spending, which took place in the form of bailouts. Say’s Law ignored many of the variables that can affect the economy, such as stating, “Through changes in the interest rate, the amount of saving will always equal the amount invested” (Arnold, 2019). Keynes’s criticism considered there are many different factors affecting interest rate, saving, and investments, that would mean that the amount of saving would not always equal the amount invested. Say’s law also says that wages are flexible and for an economy to move back to its real GDP a decrease in wages can take place, while, “Keynesians argue that in the real world, wages are often inflexible. In particular, wages are ‘sticky downwards’. Workers resist nominal wage cuts” (EconomicsHelp, n.d.). Keynes took into account many other factors that Say’s law did not. I believe that Keynes perspective to be much more realistic.References:Arnold, R. A. (2019). Economics (12th ed.). Australia: Cengage.Keynesian vs Classical models and policies. (n.d.). Retrieved February 12, 2019, from https://www.economicshelp.org/keynesian-vs-classic…
Free up your time by getting your academic assignments done faster- without compromising on quality!
Custom Academic Papers
100% Original, Plagiarism Free, Customized to your instructions!
Assignment: Response to the following discussion (minimum 1
Our Service Charter
- Professional & Expert Writers: Solving Essays only hires the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of masters and Ph.D. degrees. They have impressive academic records, besides being native English speakers.
- Top Quality Papers: Our customers are always guaranteed papers that exceed their expectations. All our writers have 5+ years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.
- Plagiarism-Free Papers: All papers provided by us are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.
- Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. Solving Essays is known for timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.
- Affordable Prices: Our prices are fairly structured to fit all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.
- 24/7 Customer Support: At Solving Essays, we have put in place a team of experts who answer all our customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.