A) Critically Evaluate Keynes` General Theory. (b) Compare And Contrast The General Theory And The Classical Theory. (c) Evaluate The Contributions Of Keynes` General Theory To Economics

br Page :1a ) Critical evaluation of Keynes Economic TheoryKeynes economicalalal system was developed by a British economist caper Maynard Keynes , which explains the ca custom of less than full usance and expenditure of presidency or activistPolicies to stabilize the prudence at chemic equilibrium at or near full-employment with acceptable anticipate flash . After Keynes the monetary policy object glass was to bear away union charter and use the fiscal policy to redistribute income so that to have to a greater extent consumption expenditure comp ard to the more unsymmetrical distribution of income in a merchandise sparing and use monetary policy to control puffiness when the economy is proximate to full-employment aimThe effectiveness of any theory must be evaluated from the perspectives whether it has sol ved the economic problems it raises and whether it has the conjectural empherical evidence to support its locating . As advantageously whether it has given new insights in to the workings of the economy and explains economic phenomenon better than previous theories and the existence of credible rebuke of the theory and whether the theory has addressed these credible weaknesses set by different economic schools of thought especially by serious music and neoclassical economic schools of thought sufficiently and are they use to develop formulate economic policies found on the theory compared to competing theories or are they used in combination with some other insights in contemporary mart economic systems and their effectiveness in firmness of purpose macroeconomic issuesOn the home whether Keynes economic theories has solved the economic problem of unemployment with acceptable inflation and the economic evidence supports this is contestable . This is because in 1970 s and 1980 s all the major industrialized market ! economies of US , UK , Germany France etc experienced high take of inflation and un acceptable level of unemployment even though they found their economic policies based on Keynesian economic policies of select management and activist fiscal policy and deficit support .

However before this decimal point the Keynesian economic polices were successful in solving unemployment problems later the world fight II period and the economy experienced high employment rates than ever before . This shows the Keynesian Page : 2economic polices are inflationary in nature at to the lowest full point in the perspectives of the neoclas sical and classical school of economist . In the contemporary economic policymaking Economist mostly desire in controlling inflation as a macroeconomic objective than full-employment and insist on the labor market shed exculpated on as a method to address unemploymentbecause they holding unemployment because of unyielding labor market due to political influences and government involvement in the regulation and determination wages as well as trade union power and inflexibleness in the labor market which causes unemployment rather than due to short-handed totality demand as well as a point of reference of inflation . However in solving unemployment at least in short-term monetarist policies alone did not alleviate unemployment because of its damaging impact on aggregate demand and effects on economic activity and investment levels at least in the short termIn accordance with monetarist view voluntary unemployment cannot exist and if market forces are allowed to...If you wan t to get a full essay, vow it on our website: OrderCustomPaper.com

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