Macroeconomics

-- MACROECONOMICSMACROECONOMICS 1 . Classical economists and Keynesian revolutionClassical economists were regarded as the first to exercise modern sparing into action , the important economists were a twist and included economists kindred Adam Smith , and John Stuart among others , they believed in economic product and development and it was at a meter when the industrial revolution was bringing changes to the society that they came up with their ideas . delinquent to the changes brought by the industrial revolution , most stack began to be selfish which means most people began to accumulate wealthinessiness for their own person gain , hence people like Adam Smith decided to measure economic growth with a different perspective . In the past , wealth of a nation was measure by the treasury of the powerfulness but Adam Smith , brought about the idea of measurement wealth of the nation by using the National yearly income of the people and the atoms of this were to be (i ) Labor (ii ) Land (iii ) CapitalClassical economists hence were displace most emphasis on hold dear created by the parsimoniousness and fit to them , prices of goods were hardened by , level of output , expert changes and the wages paid to laborers . They believed that economic value was not the convention s personal interest to people but income that is produced by people who work on land and they use equipments . Once income accrues from such , then the benefits are divided among the laborers , landlords and other members of the society in the form of wages . However this theory of value created by the classical economists brought about lots of arguments by Neo-classical theorists such as Karl Max who argued that there must be interest .

He brought about the theory of interest which puts the return to capital on the same level as land and labourThey further went in front to add the population as one of the determinants of value which was miss by the classical theorists and this added the following determinants of value : - taste and useful people and technologySo the neo-classical economists added surplus and hence the theory of simple and value . The classical economists ended by the publication of Kenya s theory of trade interest ands bills and these led to the Kenyans revolution . He believed that economists of classical thrift overruled other things by just looking at the economy by looking only at its component parts and brought about the idea of looking at the economy as a system and then he came up with theory of demand and supply . Hence we argued that what brings about economic depression is insufficient demand and free economy was determined by how much people were willing to spend . This according to him as much as producers could employ on factors of deed , they could produce large quantities of goods that could not be bought because the amount of money people had was less than what was available to be bought . This brought about the Keynesian revolution that was about theory of demand...If you want to get a full essay, order it on our website: Orderessay

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