Question

How do Keynesians and classicals differ in their beliefs about how long it takes the economy to reach​ long-run equilibrium? What implications do these differences in beliefs have for Keynesian and classical views about the usefulness of antirecessionary​ policies? Classical economists think prices adjust​ _____ and that antirecessionary policies are​ _____, whereas Keynesian economists think the opposite.

Answer 1

Answer: Rapidly; Not Necessary

Explanation:

Keynesian Economists are of the believe that the Economy takes a fairly long time to reach a long run Equilibrium while Classical economists believe that it takes a shorter period of time. This has led to both classes of Economists having varying opinions when it comes to the need for Anti-recessionary Policies.

Anti-recessionary policies are implemented by the Government to try to get the economy back to the long run equilibrium as soon as possible and Keynesian Economists support this because the believe that if help is not given, the economy will take too long to adjust on its own. Classical Economists are against this and see no need for such policies because they maintain that the economy adjusts and reaches the Long run equilibrium rapidly meaning that such policies are not necessary and would just be a waste of resources as well as a way for the government to exert more influence on the economy which is another thing they are against as well.