Question

I have to write a 2 page paper on if the supply side(neoclassical) or demand side(keynesian) is better. I cant seem to understand what neoclassical or keynesian is or means. could you dumb it down and explain it to me?

Answer 1

The supply side of the neo-classical is the side which shows the real output is determined by this side of the factors . Whereas , it also influence the growth of real output and the productivity capacity of an organisation in an economy .

The demand side of keynesian is that there is some short run fluctuation in the demand of goods and services of the commodities which is also known as the demand side .

Neoclassical economy is the economy in which they show the the relationship between the demand and supply of an individual rationality and the ability of the individual to attain its profit .

In the keynesian economy there the observe the effect of government expending in the economy over inflation and output and in this theory he has said to reduce the tax rate as to avoid depression and to pull the global economy out .