Classical economists differ from Keynesian economists in that Classical Economists believe that wages and prices are sticky, and Keynesian economists believe wages and prices are flexible upward and downward Classical economists believe economic instability is a result of unstable Investment, and Keynesians believe economic instability is a result of an unstable money supply. Classical economists believe recessions fix themselves and Keynesians believe the government should use discretionary fiscal and monetary policy to fix an unstable macroeconomy. Classical economists believe that government intervention is required to fix an unstable economy and Keynesians believe that the economy self-corrects.
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Classical economists believe that wages and prices are sticky, meaning they do not adjust quickly to changes in the economy. On the other hand, Keynesian economists believe that wages and prices are flexible, meaning they can move up or down in response to changes Show more…
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