Write a 75-100 word response to each of the bulleted questions below. Each question must have its own response and meet the minimum word count.
1. Explain the viewpoints of classical and Keynesian economists.
2. How did the economy that existed at the time of these theories influence them? Which theory is more appropriate for the economy today? Why?
3. Why do Keynesian economists believe market forces do not automatically adjust for unemployment and inflation?
4. What is Keynesian economist's solution for stabilizing economic fluctuations? Why do they believe changes in government spending affect the economy differently than changes in income taxes?
5. What is the difference between contractionary and expansionary fiscal policies? Which is more appropriate today? Explain your answer.
6. How might contractionary and expansionary fiscal policies affect your organization?
7. Discuss the relationship among markets, specialization, and growth.
8. Discuss the limitations of the macro policy model.