Answer to Question #313179 in Macroeconomics for captain nyagah

Question

Explain the macroeconomic policy analysis convergence point of the classical and Keynesians

Answer 1

One of the similarities is that, while classical economics opposes government spending, they acknowledge that, in the absence of personal spending and business investment, the government should spend in order to assist the public sector, which will, in turn, create a favorable environment for the private sector to thrive. The argument is related to Keynesian economic notions, which advocate for increased government spending as the sole way to improve and create jobs in the economy, hence increasing output.