Classical and keynesian views of economy

Reference no: EM1373613

Question1. Differences between Classical and Keynesian views of economy. Explain the situations that led to development and dissemination of Keynesian economic theories. Evaluate each system from a modern perspective with special attention to the strengths and weaknesses inherent in each system to influence macroeconomic factors in the current economic environment. Bring the expansion of societal responsibilities and the globalization of markets into the discussion.

Question2. Explain the functions of money in our society. How does the money supply influence the macroeconomic goals of price stability, full employment, and economic growth? Explain the major tools the Federal Reserve System uses to influence the money supply.

Question3. What possibilities exist when government increases its level of spending? Describe the role and effectiveness of monetary and fiscal policy in the achievement of these goals. Include a discussion of the monetary base and the concept of the multiplier in your essay.

Question4. Explain the evolution and responsibilities of the Federal Reserve System. What situations promulgated both the development and composition of system?

Reference no: EM1373613

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