A) Critically Evaluate Keynes` General Theory. (b) Compare And Contrast The General Theory And The Classical Theory. (c) Evaluate The Contributions Of Keynes` General Theory To Economics

br Page :1a ) Critical evaluation of Keynes Economic TheoryKeynes economicalalal possibility was developed by a British economist hind end Maynard Keynes , which explains the ca custom of less than full physical exertion and ingestion of organization or activistPolicies to stabilize the prudence at chemical sub bearing equilibrium at or near full-employment with acceptable anticipate flash . After Keynes the monetary policy objective lens was to talk terms union rent and use the fiscal policy to redistribute income so that to have more(prenominal) consumption expenditure compargond to the more unsymmetrical distribution of income in a merchandise providence and use monetary policy to control ostentatiousness when the rescue is proximate to full-employment aimThe effectiveness of any theory must be evaluated from the perspectives whether it has solved the economic problems it raises and whether it has the reasonable empherical evidence to support its stance . As advantageously whether it has given new insights in to the operative of the economy and explains economic phenomenon better than previous theories and the existence of credible rebuke of the theory and whether the theory has addressed these credible weaknesses place by different economic schools of thought especially by serious music and neoclassical economic schools of thought sufficiently and are they use to develop formulate economic policies base on the theory compared to competing theories or are they used in combination with some other insights in contemporary grocery store economic systems and their effectiveness in firmness macroeconomic issuesOn the undercoat whether Keynes economic theories has solved the economic problem of unemployment with acceptable inflation and the economic evidence supports this is c ontestable . This is because in 1970 s and 1! 980 s all the major(ip) industrialized market economies of US , UK , Germany France etc experienced high aim of inflation and un acceptable level of unemployment even though they found their economic policies based on Keynesian economic policies of inquire management and activist fiscal policy and deficit funding .

However before this decimal point the Keynesian economic polices were successful in solving unemployment problems later the world contend II period and the economy experienced high employment rates than ever before . This shows the Keynesian Page : 2economic polices are inflationary in nature at to the lowest tip in the perspectives of the neoclassical and classical school of economist . In the contemporary economic policymaking Economist mostly desire in controlling inflation as a macroeconomic objective than full-employment and insist on the labor market shed inflame on as a method to address unemploymentbecause they property unemployment because of unyielding labor market due to political influences and government involvement in the regulation and determination wages as well as trade union power and inflexibleness in the labor market which causes unemployment rather than due to unsatisfactory totality demand as well as a point of reference of inflation . However in solving unemployment at least in short-term monetarist policies alone did not alleviate unemployment because of its damaging impact on aggregate demand and effects on economic activity and investment levels at least in the short termIn accordance with monetarist view spontaneous unemployment cannot ex ist and if market forces are allowed to...If you want! to get a full essay, vow it on our website: BestEssayCheap.com

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