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Posted on Nov 26, 2007 at 11:56 PM

There are two main branches of Economics: macroeconomics and microeconomics. Macroeconomics focuses on big problems like unemployment and inflation and the dire threats that large budget deficts and trade deficts can pose to our economic well-being. Microeconomics deals with the behavior of individual markets and the businesses, consumers, investors, and workers that make up the macro economy. With that said, I will not go into "The Business Cycle," but will give you the four Major schools of Macroeconomics. Classical Economics: They believed that the problems of recession and unemployment were a natural part of the business cycle, that these problems were self correcting, and most importantly, that there was no need for government to intervene in the free market to correct them. Keynesianism: They believe that the global economy would not naturally rebound but simply stagnate or, even worse, fall into a death spiral. In this view, the beliefs wads the only way to get the economy moving again was to prime the economic pump with increased government expenditures. Monetarism and Supply-side Economics: The monetarist argued that the problems of both inflation and recession may be traced to one thing-the rate of growth of money supply. Supply-Side economics entered the stage after monetarist stagflation. This group are Supply-Siders believed that people would actually work harder and invest much more if they were allowed to keep more of their fruits of their labor. Supply-Siders promised that by cutting taxes and thereby spurring rapid growth, the loss in tax revenues from a tax cut would be more than offset by the increase in tax revenues from increased economic growth. New Classical Economics: New Classical economics is based on the controversial theory of rational expectations, which maintains that if you form your expectations "rationally," you will take into account all available information. This theory is what set the stage for the so call "Clinton Boom,' that was established by the first George Bush.

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Posted on Sep 13, 2018 at 04:55 AM

Very insightful and well written. I like that you point out about the "Clinton Boom" and give credit where it is due.  BTW I love bill he can't figure out how to hit a joint. Is clueless that a blow job is a sex act. But he becomes president of the US.  LMFAO


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