What Is Economics?

What is classical economics and the difference of classical economics from keynesian economics?

• I have to do a project on Classical Economics and I am having the hardest time finding information on the subject and putting together what i read to a powerproject. it doesn't help that i have the worst economics teacher =/ please help me!

• Answer:

  Classical economics believes that there should be little to no government involvement in an economy. It is similar to the Laissez-Faire approach to Economics. Keynesian economics believes that the federal government can intervene in a time of recession to increase aggregate demand to help stabilize output through fiscal (taxation and government spending) and monetary policy (control of money supply and interest rates). John Maynard Keynes believed that an economy could operate at full employment if a certain level of spending (consumer and government) and private investment exists. In order to combat a recession, he advocated tax cuts for the middle class and lowering or keeping interest rates low to encourage borrowing which would lead to more spending and investment. He also encouraged more government spending on things such as infrastructure, education, healthcare, and public needs to create jobs which would also increase consumer spending. Classical economics believes that recessions are a part of a normal business cycle and that the "free-market" should be left alone and allowed to operate without government interference. Sorry about your economics teacher.