Difference Between Classical Economics And Macroeconomics

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Recommended: Advantages and disadvantages of macro and microeconomics

Macroeconomics presents the educational function to help students become the future economics specialist, forming a critical thinking about the complex functioning of the contemporary economy. Thus, the field of study of Macroeconomics has evolved over time, through a long process of confrontation of various theories of thinking and economic application. Moreover, Macroeconomia investigates the economy at a national level as a whole, targeting the aggregation of individual economic behaviors across the economy as well as the resulting global effects: unemployment, inflation, cyclical development, imbalance in external economic exchanges, external economic relations. Accordingly, the macroeconomic outcomes are the outputs of the aggregate …show more content…

Classical economic theory allows at the same time the intervention of the individual acting on his / her own interest, being responsible but at the same time free to make the necessary economic decisions that bring personal benefits, which gives transparency economic resources, these being allocated according to the wishes of individuals and enterprises in the market. However, Classical economic theory uses value theory to determine prices in the economic …show more content…

The classical economy underlines the fact that free markets lead to an efficient outcome and that it is self-regulating compared to the Keynesian economy, which argues that the economy may be under full capacity for a considerable time due to imperfect markets.
In the study of macroeconomics, the classical economy assumes that the long-term aggregate supply curve is inelastic, and as a result, any deviation from the full job will be temporary, a totally controversial topic by Keynesian specialists. The theories of unemployment are also totally different from the fact that the form of aggregate supply and the role of aggregate demand have a major influence in influencing economic

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