Keynesian Economics vs. Classical Economics free essay sample

In economics, there are two main theories: Keynesian economics and Classical economics. Each approach to economics has a different take on monetary policy, consumer behavior, and last but not least, government spending. Let us first look into classical economics. The basis of the Classical Theory of Economics is self-regulation. Supporters believe that the economy is able to maintain its-self and is always capable of achieving the natural level of real GDP. While circumstances do occasionally arise that effect the economy, causing it to fall above or below the natural GDP level, self-adjusting mechanisms are believed to exist. The belief that prices, wages, and interest rates are flexible and Say’s Law are two of the classical economists most firmly held beliefs. Say’s law basically states that the economy is always capable of demanding all of the output that its workers and firms choose to produce. Hence, government intervention is not needed. We will write a custom essay sample on Keynesian Economics vs. Classical Economics or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Generally, political liberals would side with Classical economics. Keynesian Theory rejects Say’s Law of self-regulation and suggests that the relationship between aggregate income and expenditure is key. Keynesian believers agree that government should step in and implement policies that will regulate the economy more efficiently. Typically political conservatives would agree with the Keynesian Theory. Were I a policy maker receiving conflicting advice, I would consider all aspects of the issue including equilibrium real GDP, employment, and prices. Money is measured in different ways, mainly focusing on the liquidity, or how easily and quickly it can turn into a spendable form (Ayer Colligne, Pg. 328). There are three main measurements; M1, M2 and M3. M1 represents the most liquid form of money and consists of the sum of currency and coins in the hands of the public, demand deposits, checkable deposits, and travelers checks. M2 is the sum of M1 plus the balances in savings deposits and balances deposited into money market mutual funds. Lastly, M3 is the summation of M2 plus large time deposits (greater then 100k), and several other near monies Ayer Colligne, Pg. 328-329). Expansionary monetary policies are fiscal policies that encourage economic growth. The deposit multiplier is a value representing the ratio of bank reserves to bank deposits. If bank reserves increase, bank deposits may increase by the amount of the increase times the deposit multiplier (Ayer Colligne, pg 257-328). Balance of payments accounts are an account of all transactions (monetary) between a country and the rest of the world. The BOP includes two sub accounts: the current account and the capital and financial account. The current account is adjusted for international incomes and transfers and records the monetaty value of imports and exports (both goods and services). The capital and financial accounts records the monetary value of capital inflows and outflows, and any financial investments (purchasing of stocks or bonds). The BOP must have a balance that equals zero (Ayers Collinge, pgs 378-380). The balance of payment accounts is very important to economic growth because it encourages international trade and hold each country accountable for fiscal policy. International commerce can increase the country’s consumption, however not all share in the gains. The majority of the economy benefits from international trade, but some people will end up losing due to job opportunities lost, migration, and eventual inflation/deflation, or market uneasiness.

College Student Scholarship

College Student ScholarshipSample College Essay Umaine, though she is by far the least knowledgeable of the three students competing for a college student scholarship; nonetheless, is the one that seems to have the most challenging task. She must write a composition in a matter of minutes; however, her intellect and previous achievements allow her to become successful.There are many ways that these scholarships can be won, and Ms. Umaine will need to have a solid grasp of several different subjects, including art, music, politics, history, and literature. The professor, Mr. Monty, remarks that even though this competition is not completely the same as a typical academic writing experience, he hopes to make the essay an enriching experience for Ms. Umaine. She also has the opportunity to interact with other students who might be able to provide encouragement and help to get her to success.When asked about her experience, Ms. Umaine describes how she came across the book The Best Ameri can Essays at the local library. She describes how the book inspired her to begin writing, which eventually led her to being the College Student Scholarship Winner.The first part of Ms. Umaine's essay is a research of her past experiences. She is asked to describe some of her prior work, which was not done in an academically challenging environment. Many times the author of a scholarship essay has very little exposure to other forms of writing, and she therefore uses her own experience as a guide.In this portion of the essay, she makes use of basic research skills to gather the facts about herself and then uses her knowledge base to address them. She should include a list of all the scholarships she has received, as well as the amount they paid, or what they paid her. She must also inform the reader of the places where she is currently enrolled, and any awards that were given for achievements.The second part of Ms. Umaine's essay is a summary of her thesis statement. This should inc lude information on her opinion on political events, the progress of current events, her love of literature, and her desire to understand the many cultures in the United States.She must then present her ideas to the reader, and must outline the completion of her project, which she describes in the third section of her essay. It is encouraged that Ms. Umaine not only looks forward to the day that she wins the scholarship, but that she also takes steps to prepare for the competition.She is given several tips on how to prepare for the competition and on how to prepare for the essay, which includes the use of an organizer, index cards, and dictionaries. The guidelines for writing the essay is available in the student section of this book.