Essay Available:
Pages:
2 pages/β550 words
Sources:
Check Instructions
Style:
MLA
Subject:
Business & Marketing
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 8.64
Topic:
Weekly essay 9. The classical political economy was developed between the 17th and 19th centuries.
Essay Instructions:
While classical political economy was important in the nineteenth century, neoclassical and
Keynesian economics were predominant in the twentieth century. Give at least two of the ideas
of neoclassical economics that differ from classical political economy, explain how they differ,
and indicate also whether and how Keynesian economics would differ.
Each weekly writing must be at least 500 words and should have at least one reference that
justifies the comments made in the weekly writing.
Please make sure that plagiarism rate is below 20%
Essay Sample Content Preview:
Student’s Name:
Instructor’s Name:
Course + Code:
Submission Date:
Weekly essay 9
The classical political economy was developed between the 17th and 19th centuries. It involved the study of economic forces in a particular state. It was mainly concerned with the changes in economic growth and tried to explain how people create wealth and destroy it. Moreover, it stressed the importance of unrestricted trade, laissez-faire, and free competition (Coy, 11). The classical liberty economy enhanced high productivity levels, which increased more employment opportunities that led to increased wages. Classical political economy was doing well in the 19th century, but at the start of the 20th century, it started to decline, and a new theory emerged known as neoclassical economics.
Neoclassical economics emphasized on the importance of cultural development. Neoclassical economists believed that human beings tend to be coherent utility-maximizing creatures by nature. Additionally, neoclassical economics was mostly used to describe how individuals tend to maximize their profits at the lowest costs possible (Coy, 7). Keynesian economics argues that the main driving force to the country's economy is the aggregated demand. Aggregated demand involves the total amount used to purchase goods and services by both the private and government sector (Fukuyama, 21). The spending process starts with production to the employment rates. Furthermore, the model argues that the total amount of spending determines the economic outcomes of a particular state. Thus decline in demand leads to an economic decrease in a country.
There are some differences between classical political economy and neoclassical economics. Firstly, classical economics believes that wages, prices, and rates are always flexible, and their markets are always clear. Thus, this indicates that this model assumes that the economy of a particular country is self-regulating (Lefeber, 39). Economists of this model believe that there is no unemployment since the growth of any business depends on the supply of production elements. On the other hand, neoclassical economics believes that individuals have rational expectations, and they work...
Instructor’s Name:
Course + Code:
Submission Date:
Weekly essay 9
The classical political economy was developed between the 17th and 19th centuries. It involved the study of economic forces in a particular state. It was mainly concerned with the changes in economic growth and tried to explain how people create wealth and destroy it. Moreover, it stressed the importance of unrestricted trade, laissez-faire, and free competition (Coy, 11). The classical liberty economy enhanced high productivity levels, which increased more employment opportunities that led to increased wages. Classical political economy was doing well in the 19th century, but at the start of the 20th century, it started to decline, and a new theory emerged known as neoclassical economics.
Neoclassical economics emphasized on the importance of cultural development. Neoclassical economists believed that human beings tend to be coherent utility-maximizing creatures by nature. Additionally, neoclassical economics was mostly used to describe how individuals tend to maximize their profits at the lowest costs possible (Coy, 7). Keynesian economics argues that the main driving force to the country's economy is the aggregated demand. Aggregated demand involves the total amount used to purchase goods and services by both the private and government sector (Fukuyama, 21). The spending process starts with production to the employment rates. Furthermore, the model argues that the total amount of spending determines the economic outcomes of a particular state. Thus decline in demand leads to an economic decrease in a country.
There are some differences between classical political economy and neoclassical economics. Firstly, classical economics believes that wages, prices, and rates are always flexible, and their markets are always clear. Thus, this indicates that this model assumes that the economy of a particular country is self-regulating (Lefeber, 39). Economists of this model believe that there is no unemployment since the growth of any business depends on the supply of production elements. On the other hand, neoclassical economics believes that individuals have rational expectations, and they work...
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:
π Other Visitors are Viewing These MLA Essay Samples:
- Pess release. Litgen Technologies Announces Danny Jones as Vice President of Sales and Marke. . .2 pages/β550 words | No Sources | MLA | Business & Marketing | Essay |
- How to build your business3 pages/β825 words | 3 Sources | MLA | Business & Marketing | Essay |
- CASE 7.2 Poverty and Pollution. Writing Assignment 33 pages/β825 words | MLA | Business & Marketing | Essay |
- Multi-Source Analysis. Research Context. Argument Analysis6 pages/β1650 words | 4 Sources | MLA | Business & Marketing | Essay |
- Response Writing Assignment: Focused Differentiation1 page/β275 words | No Sources | MLA | Business & Marketing | Essay |
- Anti Smoking Campaign Essay4 pages/β1100 words | 2 Sources | MLA | Business & Marketing | Essay |
- Comparison Essay. Austrian economics vs Classical political economists2 pages/β550 words | MLA | Business & Marketing | Essay |