Economic Theories
Texto del Guión Gráfico
- Wait.... So which one of your theories actually supports government intervention... I'm confused.
- The ones that support Keynes theory are Roy Forbes Harrod and Sir John Richard Hicks, right?
- Yeah, and the ones who support Smith are David Ricardo and Jean-Baptiste Say
- My Keynesian theory supports government intervention because my theory is centered around the idea that our government should play an active role in out countries' economics, and that we shouldn't let our country reign in a free market system.
- Okay... So now that I understand that Mr. Keynes' theory supports government intervention, what exactly is your theory Mr. Smith
- Very good question sir. My theory is best known as the Classical Theory. In this theory I believe that the market works best when the government lets them be. I think that people (rational people) would find it best to to use the nation's resources, that they would be better for it as well. I also view that government regulation can be detrimental to the economic growth of the country.
- Excuse me sir, do you know why the two theories, Keynesian and Classical, disagree over government intervention.
- Well, John Keynes justifies government intervention through public policies that aim to achieve full employment and price stability, while Adam Smith's classical theory rejects government interference in market activities. Smith says that the government should serve just as 3 functions: protect national borders, enforce civil law; and engage in public works.
- I was talking with Maddie and they think that the Keynesian theory is better because they both believe that the government should play an active role in the economy
- Yeah, I was talking with Paloma and she also said that the Keynesian theory also increases the overall employment rate, and it lowers government spending.
- This project was done by Madacyn Warren and Paloma Rodriguez
Más de 30 millones de guiones gráficos creados