Keynesian, Marxist, and Classical economics

What does Classical Economics emphasize regarding market efficiency?

It believes in the self-regulating nature of markets through supply and demand.

Classical: What principle does Say's Law state?

Supply creates its own demand, meaning production naturally generates enough income to purchase all output.

What is a core idea of Keynesian Economics?

Economic output is influenced by aggregate demand, not just supply.

Who is the key figure associated with Keynesian Economics?

John Maynard Keynes.

What is the Multiplier Effect in Keynesian Economics?

It suggests that government spending can stimulate additional economic activity, boosting overall demand.

What does Marxist Economics view as the arena of conflict?

It views economic systems as arenas of conflict between the bourgeoisie (capitalists) and the proletariat (workers).

What is the Labor Theory of Value according to Marxist Economics?

It argues that labor is the source of value, but capitalists exploit workers by paying them less than the value they produce.

What does Marxist Economics say about capitalism?

It believes capitalism is inherently unstable and will eventually be replaced by socialism due to its contradictions.

How does Classical Economics view the role of government?

It advocates minimal government intervention.

What role does the government play in Keynesian Economics?

It supports active fiscal and monetary policies to stabilize the economy.

According to Marxist Economics, what role should the state play?

It views the state as a tool of the ruling capitalist class, advocating for a socialist economy.

How does Classical Economics view unemployment?

It believes unemployment is temporary and self-correcting.

What is the view on inequality in Classical Economics?

It considers inequality a natural outcome of free markets.

How does Keynesian Economics suggest to address unemployment?

It believes unemployment can persist without government action.

What is the fundamental flaw of capitalism according to Marxist Economics?

Inequality is seen as a fundamental flaw of capitalism.

What has each economic school of thought influenced?

Classical economics formed the foundation of free-market capitalism, Keynesian economics shaped modern macroeconomic policy, and Marxist economics inspired socialist movements.