During Week 2 or earlier, the instructor assigns students to one of two groups: the classical school (including its later development such as monetarism, Austrian economics, supply-side economics, new classical economics) and the Keynesian school (including its later development, new Keynesian economics). Then, the two groups (or four to include two classical groups and two Keynesian groups, depending on the number of students with about seven or eight students per group) discuss classical economics and Keynesian economics, defending their school and criticizing the other school’s theories and practices. In your responses,
- Compare and contrast classical economics and Keynesian economics. What are the major differences between them?
- Which model would you prefer? You may already prefer one because you are defending your school. Thoroughly explain your reasoning.
- As a classical economist or a Keynesian economist, what would you do for the current U.S. economy?