ECON 205 Lecture (3.26.2008)

ECON 205 Lecture (3.26.2008) - ECON-205 Lecture 3-26-2008...

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ECON-205 Lecture 3-26-2008 Chapter 11: The Classical Model (Page 262-265) Adam Smith father of economics (1776) wrote The Wealth of Nations 1790 David Ricardo 1800 Malthus 1820 Mills Smith to Mills Classical school capitalism should be based on competition, emphasize private property, should be led by capitalists (investors) 1840 Karl Marx Stone Age – slavery – feudalism (created two entities… landlords and serfs) – capitalism (created two partners… capitalists and workers) – socialism (you get what you work for) – communism (you get what you want) – Keynes added the “G” in C + I + G… for GDP, “C” is the highest, “G” is the second highest, and “I” (is the third highest) Aggregate demand total spending “C” + “G” = fiscal policy “I” = monetary policy John Say became leader of the classical school Say looked at the supply side, not the demand side Say’s Law: Supply creates its own demand
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This note was uploaded on 09/26/2009 for the course ECON 205 taught by Professor Kamrany during the Spring '07 term at USC.

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ECON 205 Lecture (3.26.2008) - ECON-205 Lecture 3-26-2008...

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