<\/p>\n
(1a) Economists tend to fall into two distinct camps where government intervention in the economy is concerned.<\/p>\n
“Keynesian” economists favor active policymaking based on the
\nPhillips Curve and NAIRU theories. These theories purport a possible
\ntrade-off between unemployment and inflation and suggest that
\nappropriate policy can be enacted to guide us back to a soft landing
\nwhen business cycles create havoc within the economy.<\/p>\n
Economists who align more with the “Classical” school would have a
\n“leave it alone” (Laissez Faire) attitude and would oppose active
\npolicymaking. “Rational Expectations Theory” (a “new classical
\napproach”) suggests that people figure out what will happen based on
\npast policy changes, therefore rendering active intervention
\nineffective.<\/p>\n
In this week’s Discussion area, examine the following:<\/p>\n
(1a) Economists tend to fall into two distinct camps where government intervention in the economy is concerned. “Keynesian” economists favor active policymaking based on the Phillips Curve and NAIRU theories. These theories purport a possible trade-off between unemployment and inflation and suggest that appropriate policy can be enacted to guide us back to a soft […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_joinchat":[]},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/172537"}],"collection":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/comments?post=172537"}],"version-history":[{"count":1,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/172537\/revisions"}],"predecessor-version":[{"id":175352,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/172537\/revisions\/175352"}],"wp:attachment":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/media?parent=172537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/categories?post=172537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/tags?post=172537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}