- Trickle down theory to help the rich 1st a then everyone else
- In the LR, the economy will balance @ full employment output
- The invisible hand
Keynesian School:
- AD is the key, not AS
- In the LR, we are dead
- Leaks cause recessions
- Savings cause recessions
Digging deeper please visit:
You should also know that for Classical, it assumes competition and prices/wages are flexible downwards. For Keynesian, there is no competition and prices/wages are inflexible downward (also called the ratchet effect). Additionally, AS determines output and employment for classical while AD determines it for Keynesian. Classical is microeconomics while Keynesian is Macroeconomics
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