- Words: 3265
- Length: 12 Pages
- Topic: Economics
- Paper #: 91347788
The Classical Model (1776-1935)
The classical model largely follows the conclusions reached in Microeconomics. The fundamental equilibrium is in the supply and demand for labor. The Demand for Labor and Labor Supply, Income Taxes, and Transfer Payments are the major microeconomic references in the Classic Economic Models (Hicks and Keynes, 1937).
Keynesian Models (1936-1969)
The simple keynesian model, a greatly oversimplified view of the economy, constructs an equilibrium without referring to the