The videos below feature two well-known economists in a rap battle over causes of the business cycle and the proper governmental policy response. Summarize the key arguments of Austrian (Hayek) and Keynesian schools of thoughts. Your answer should address both the causes of the business cycle and the policy prescriptions. While these economists are usually thought of as macroeconomists, their theories do have microeconomic foundations. Elaborate on this point.

https://youtu.be/d0nERTFo-Sk

https://youtu.be/GTQnarzmTOc

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A Summary of the key arguments of Austrian Hayek and Keynesian schools of thoughts The Keynesian school of thoughts stipulates that the economy ought to be steered The Keynesian general theory offers ... View the full answer