Three Macroeconomic Schools of Thought In the current global economic downturn, economists and policy makers alike are looking for answers and solutions to problems like inflation, unemployment, and declining production. Accordingly, the following report examines three macroeconomic schools of thought: the Keynesian Model and Revolution, the Monetarist Model, and the New Classical Model. The Keynesian Model and Revolution Prior to the Great Depression of the 1930s, the prevailing macroeconomic approach in America and many other Western nations around the world was based on classical economics. Classical economics is largely derived from the work of men like Adam Smith who is best known for espousing Laissez-faire economic environments -...The end:
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