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Say's Law, the Quantity Theory of Money, and self-regulating markets. The Classical model is all about Laissez-faire, meaning "hands off". Classical economists want little government interference in the economy, and believe recessions will work themselves out faster than the government can act.
Pronounced Kane-zee-an
Sticky prices and wages, a general glut, and active policy. The Keynesian model advocates for an active government which works to stabilize the economy and protect us from the consequences of mass panic. Keynesian economists advocate for counter-cyclical policies: increase spending / decrease taxes during recession and decrease spending / increase taxes during economic booms.
Examine the marginal propensity to consume (MPC) and the marginal propensity to save (MPS) and how they impact total spending through the expenditure multiplier. The multiplier is calculated one of two ways:
1 / (1 - MPC)
1 / MPS
Answer each question on a piece of paper. Then watch the solution video. Trust me, I make the answer look easy. If you don't try it first, you won't build up your mechanism for answering Assessment questions.