Question: Help me reply this student post Keynesian economists would explain the performance of the economy over the past couple of years as a decrease in
Help me reply this student post Keynesian economists would explain the performance of the economy over the past couple of years as a decrease in demand because the these economists believe in government spending which has decreased making it harder for consumers to get product, and consumers haven't been buying goods as much as they used too. Neoclassical economists would explain the performance of the economy over the past couple of years as a decrease in supply because these economists believe in consumers making rational decisions (which is true) and there has been an increase of the cost of consumer goods, and decreases in production capacity so manufacturers are pumping out more product. I think that the Neoclassical way of thinking makes the most sense to me as a consumer because why would I buy more goods if the prices are just going to keep going up? my thought process then becomes that if they're producing too much of a particular good and nobody is buying it, than sooner or later, the price of the good will drop benefitting me as the consumer. My question to Keynesian thinking people would be, why, as a consumer, would you think that demand
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