The Short-Run and of the Macro Economy Essay Example | Topics and Well Written Essays - 250 words

The short and of the Macro Economy - Essay ExampleAs the study outlines Keynesian theory gives focus on immediate outcomes in the economic theory and leave behind focus on short term policies caboodle by the government and how they can be used to improve the economy. The Keynesian theory is built on the belief that the government go away be responsible for the economy and will lay down policies that will put the economy in a favorable state. These will include policies such as financial and fiscal policies, which are used to regulate the economy. The neoclassical theory is based on a rid market hence the forces of hold and supply shape the economy. A change in quantity demanded is broadly the increase or decrease in demand that is brought about by a change in price of the product which results to a change in quantity demanded. This implies that the change in the quantity demanded will be altered only because of a change in price whereas shift in demand is caused by other fact ors other than price. Change in quantity demand involves a movement on the demand curve.