discussion 1: There are essentially polar opposite view points to the classical and Keynesian approach to macroeconomics.  The largest, and most obvious, difference between these two conflicting points of view would be the ‘hands-on’ vs. ‘hands-off’ approach.  Classical economists follow the ‘hands-off’, or laissez fair approach (Amacher, 2019).  Keynesians would argue this is not a good idea because the economy clearly shows that, when left untouched, it can spiral in to terrible circumstances which call for a ‘hands-on’ approach.  Another primary dispute between the two view points is how the economy adjusts during recession and finds its way back to full employment (CrushCourse, 2015).  The classical point of view would lead us to believe the economy will correct itself over time.  The Keynesian model asserts the economy can be stuck below its potential for too long of time (g whizziest, 2015).  The Keynesians say wages and prices, although flexible, can get stuck and keep the economy well below its full employment potential (g whizziest, 2015).  Sure, it might correct itself in the long run, but how long? As John Maynard Keynes' said, “ In the long run we are all dead. ”             For this discussion, I have been assigned to the classical point of view.  I would support this economics philosophy for the following reason: classical economists believe the economy will experience ups and downs but will always return to full employment on its own.  Even during a recession, the ‘price adjustment mechanism’ will right the economy (CrushCourse, 2015).  This would mean that during a recession unemployment, prices, wages, and interest would fall (CrushCourse, 2015).  However, this would also mean consumption, production, and investment should increase over time, which would eventually return the economy to full employment (CrushCourse, 2015).             In regard to the current U.S. economy, as a classical economist, I would take several measures to right the course.  For starters, we would need to cut out all government involvement, or manipulation.  All the government does is mess things up.  Fire the Federal Reserve members.  The economy does not need any sort of regulation.  We will allow each market to regulate itself without rules imposed by the government.  In the long run, any problem the U.S. economy might face will be corrected naturally. Amacher, R., & Pate, J. (2019).  Principles of macroeconomics  (2nd ed.). Retrieved from https://content.ashford.edu/ CrushCourse. (2015, December 8).  Classical and Keynesian economics . Links to an external site. [Video file]. Retrieved from https://www.youtube.zcom/watch?v=JOWiy3wbLvI g whizziest. (2015, September 29). The Keynesian model and the classical model . Links to an external site. [Video file]. Retrieved from https://youtu.be/Xt_L8WFKvLc discussion 2: The model school that was picked for me to write about is classical economics. Compare and contrast classical economics and ...

1. discussion 1:
There are essentially polar opposite view points to the classical
and Keynesian approach to macroeconomics. The largest, and
most obvious, difference between these two conflicting points
of view would be the ‘hands-on’ vs. ‘hands-off’ approach.
Classical economists follow the ‘hands-off’, or laissez fair
approach (Amacher, 2019). Keynesians would argue this is not
a good idea because the economy clearly shows that, when left
untouched, it can spiral in to terrible circumstances which call
for a ‘hands-on’ approach. Another primary dispute between
the two view points is how the economy adjusts during
recession and finds its way back to full employment
(CrushCourse, 2015). The classical point of view would lead us
to believe the economy will correct itself over time. The
Keynesian model asserts the economy can be stuck below its
potential for too long of time (g whizziest, 2015). The
Keynesians say wages and prices, although flexible, can get
stuck and keep the economy well below its full employment
potential (g whizziest, 2015). Sure, it might correct itself in the
long run, but how long? As John Maynard Keynes' said, “
In the long run we are all dead.
”
For this discussion, I have been assigned to the
classical point of view. I would support this economics
philosophy for the following reason: classical economists
believe the economy will experience ups and downs but will
always return to full employment on its own. Even during a
recession, the ‘price adjustment mechanism’ will right the
economy (CrushCourse, 2015). This would mean that during a
recession unemployment, prices, wages, and interest would fall
(CrushCourse, 2015). However, this would also mean

2. consumption, production, and investment should increase over
time, which would eventually return the economy to full
employment (CrushCourse, 2015).
In regard to the current U.S. economy, as a classical
economist, I would take several measures to right the course.
For starters, we would need to cut out all government
involvement, or manipulation. All the government does is mess
things up. Fire the Federal Reserve members. The economy
does not need any sort of regulation. We will allow each
market to regulate itself without rules imposed by the
government. In the long run, any problem the U.S. economy
might face will be corrected naturally.
Amacher, R., & Pate, J. (2019).
Principles of macroeconomics
(2nd ed.). Retrieved from https://content.ashford.edu/
CrushCourse. (2015, December 8).
Classical and Keynesian economics
. Links to an external site. [Video file]. Retrieved from
https://www.youtube.zcom/watch?v=JOWiy3wbLvI
g whizziest. (2015, September 29).
The Keynesian model and the classical model
. Links to an external site. [Video file]. Retrieved from
https://youtu.be/Xt_L8WFKvLc
discussion 2:
The model school that was picked for me to write about is
classical economics.

3. Compare and contrast classical economics and Keynesian
economics. What are the major differences between them?
Economics is the study of the distribution, production, and
utilization of merchandise and enterprises. In economics, there
are two different hypotheses, classical economics, and the
Keynesian economic theory. The two of them differentiate one
another and bring out two distinctive view/sides in economics
The contrasts among classical and Keynesian economic
influences government policies, in addition to other things.
Classical economist shows that loan costs, wages, and costs of
merchandise and ventures can change without outer mediation
to “restore the economy to full employment” equilibrium
(Dombusch, Fischer & Startz, 2001). It trusts the economy
ought to be left and enable it to direct itself. On the off chance
that the government can lessen its intercession since a portion
of these optional financial and money related strategies can
exacerbate the issue as opposed to managing it, the economy
can reestablish itself. As the rate of unemployment keeps on
expanding and the costs of products diminish, laborers will take
lower compensation. Firms will make benefits, they will
increase production to take advantage of low costs data sources,
and supply will increment.
Nonetheless, Keynesian economists trust that expansionary
strategies, for example, expanded spending and lowered taxes
invigorate the total interest (Amacher, and Pate, 2012). The
conviction here is that increased government spending utilizing
upgrade programs or different strategies can be legitimately
attached to building framework which expected laborers to do
as such. With taxes, Keynesian theory trusts that lowering taxes
will give additionally buying capacity to shoppers, and
subsequently demand will increment.
Which model would you prefer? You may already prefer one
because you are defending your school. Thoroughly explain

4. your reasoning.
There are refinements to be drawn. There are unique thoughts in
economics, giving tools to understanding why economies work
as they do, and afterward, there are different economic policies
that can be trailed by governments or recommended by
economists. I think Classical is correct. The issue is there's no
time limit. They state that in the long run, the economy will
work out; however that could take any number of years, so it's a
silly contention to make. With that in mind, even though I was
assigned the classical economist, I'm nearer to Keynesian. The
issue I have with Keynesian is that it appears to depend to a
great extent on the responses of individuals. It asserts there's a
connection between the interest rate and savings. That is valid
yet dislike transforming one generally has the direct
relationship they guarantee it does. It mostly appears as though
an over-rearranged portrayal of things that are effectively
mishandled by policymakers.
As a classical economist or a Keynesian economist, what would
you do for the current U.S. economy?
As a classical economist, I would demand the government to put
their hand off the economy and let everything fall in place by
itself.
References
Amacher, R., & Pate, J. (2019).
Principles of Macroeconomics
, 2nd edition. [Electronic Version]. Retrieved from:
https://content.ashford.edu/books/
Dombusch, R., Fischer, S. & Startz, R. (2001).
Macroeconomics
. New York: McGraw-Hill

5. discussion 3:
The government bodies that determine fiscal policy are the
Legislative (Congress) and Executive (President) branches of
government and the Federal Reserve. Congress creates bills
(plans, proposals, etc.) and they are then voted on. Some of
these bills are proposals in changes to government spending, or
taxes. Government spending and taxes define fiscal policy
(Amacher, 2019).
The President can also propose changes to government
spending, or taxes, in the form a bill to Congress. I include the
President as part of this response because the Executive branch
clearly has the most weight, and will get immediate attention
from Congress. The Legislative branch may, or may not, sign
these bills in to law.
The last government body to determine fiscal policy is the
Federal Reserve. This entity is meant to have autonomy from
the branches of government, although the Executive branch has
the means to appoint members with approval from the Senate.
The Federal Reserve’s primary function is to conduct monetary
policy (Federal Reserve, n/d).
When defining fiscal policy as taxes and government
expenditures, it is easy to see the effects such policies have on
the economy. Any changes to taxes, “can be a very effective
tool for influencing the level of income and output,” (Amacher,
2019). Several types of taxes from personal, business, and
property will affect the economy in different ways. When it
comes to business, or corporate, taxes, the higher the they are,
the less those businesses might produce or employ. This is not

6. to say that corporate taxes prevent production or employment,
but they do have an effect.
Government spending is also a massive economic influence.
These expenditures add up to over a third of U.S. national
income (Amacher, 2019). There is a clear relation to
government spending and employment. Any new project or
program will require people; therefore, new jobs.
The Federal Reserve, through its monetary policy, has the
authority to raise or lower interest rates (Federal Reserve, n/d).
These interest rates directly impact the credit market which will
determine the level of desire business will have towards
borrowing funds. The more expensive it is for a business to
borrow funds the less they will produce or employ.
Unfortunately, the U.S. national debt as had very little affect
towards fiscal policy. During the 80s through early 90s, the
debt rose from less than $1 trillion to over $4 trillion (Amacher,
2019) and has continued to skyrocket. This is because the
national debt is a measure of all past budget deficits minus all
past surpluses (Amacher, 2019). The national budget is
determined by Congress. When the government spends more
than the its revenues in a given year, we are left with a deficit
(Amacher, 2019). If our revenues exceed expenditures, we are
left with a surplus. The U.S. government has been successful
towards a balanced budget for a couple years in 98’, 99’, 00’,
and 01’ resulting in surplus (Amacher, 2019). Since then, we
have had nothing but deficit for each following year. There
simply has not been any serious effort made by fiscal policy to
balance the budget and control a deficit.
The current U.S. national debt is not a serious problem like
heavy personal debt for the outstanding reason of
accountability. When it comes to personal debt, when left
unpaid, there are consequences. If you fail to make a mortgage

7. payment or auto loan payment, there’s a good chance you can
lose your house or car. With the national debt, there are
payments the U.S. government is obligated to make in the form
of interest. However, no one would be personally held
responsible in the event the U.S. chose not to make such
payments. There would be consequences to the credibility of
the U.S., but no government official would be left out on the
street.
Amacher, R., & Pate, J. (2019).
Principles of macroeconomics
(2nd ed.). Retrieved from https://content.ashford.edu/
Federal Reserve, (Date n/d). Board of Governors of the Federal
Reserve System. About the Fed. Purposes and Functions. Links
to an external site. Retrieved from
https://www.federalreserve.gov/aboutthefed/pf.htm (Links to an
external site.)Links to an external site.
discussion 4:
Describe the roles of government bodies that determine fiscal
policy.
The fiscal policy manages the government’s activities about tax
collection and government use with the point of influencing one
part of national income or the aggregate demand. The fiscal
policy additionally goes for accomplishing at least one
macroeconomic approach targets. It is utilized when the
government wants to keep up a specific dimension of business,
financial development, and regular prices. (Dombusch, Fischer
and Startz, 2001). The government can utilize expansionary
fiscal policy which includes expanding consumption and

8. decreasing tax levels with a point of diminishing aggregate
demand (AD) or the GDP. This sort of fiscal policy manages
monetary issues, for example, low financial development rate,
deflation, B.O.P surplus, and unemployment rate. A recession
prompts a recessionary gap which implies that the AD is
shallow" then it would be in a" circumstance of full work.
Government expenditure builds interest for items and services.
If the government does not mediate amid the recession time
frame, it might set aside much effort to recuperate from this
recession. Moreover, if the reasons for recession are not
recognized and tended to, it may happen once more.
Explain fiscal policies effects on the economy’s production and
employment.
Fiscal policy choices widespread affect the regular decisions
and conduct of individual family units and organizations. The
objective of fiscal policy is to diminish unemployment. A few
financial analysts contend that taxes can significantly affect the
force with which individuals work and their general proficiency
and profitability. However, there is minimal substantive
experimental proof to help this view. Numerous variables add to
improving profitability, tax changes can assume a job, yet
secluding the effect of tax reductions on efficiency is incredibly
troublesome.
How does the enormous U.S. national debt affect the federal
government’s fiscal policy?
There is a different way the fiscal policies would influence
Federal debts. One, “certain policies that are now in place but
are scheduled to change under current law would be continued,
and some provisions of law that might be difficult to sustain for
a long period would be modified” (Demirel, 2014, para. 5).
Also, “budget deficits would be smaller than those projected
under current law (Demirel, 2014, para. 6). Lastly, “deficit

9. reduction would be phased in such that deficits excluding
interest payments would be a total of $4 trillion lower through
2024 than in CBO’s baseline, and the amount of deficit
reduction as a percentage of GDP in 2024 (over 2½ percent)
would be continued in later years” (Demirel, 2014, para.
7)."spending shortages would be littler than those anticipated
under current law (Demirel, 2014, para. 6). In conclusion,
"shortfall decrease would be staged in with the end goal that
deficiencies barring interest installments would be an aggregate
of $4 trillion lower through 2024 than in CBO's pattern, and the
measure of shortage decrease as a level of GDP in 2024 (over
2½ percent) would have proceeded in later years" (Demirel,
2014, para. 7).
Is the current U.S. national debt a serious problem like a heavy
personal debt? Why or why not? Discuss thoroughly
Indeed, I do trust that the current US national debt is a
noteworthy issue. Given that the national debt has as of late to
become quicker than the extent of the American populace, it
likewise influences our day by day lives. The national debt has
exploded in the most recent decade to $21 trillion from about a
large portion of that. What we owe is presently more prominent
than the U.S. economy, a dimension that many, if not most,
economist trust represents a risk to America's way of life and its
financial standing on the planet. What's more, the debt is
growing faster than our economy.
References
Reference
Amacher, R., & Pate, J. (2019).
Principles of Macroeconomics
, 2nd edition. [Electronic Version]. Retrieved from:
https://content.ashford.edu/books/ (Links to an external

10. site.)Links to an external site.
Demirel, D. (2014, July 23). How would various fiscal policies
affect federal debt and the economy? (Links to an external
site.)Links to an external site. [Blog post]. Retrieved from
https://www.cbo.gov/publication/45558 (Links to an external
site.)Links to an external site.
Dombusch, R., Fischer, S. & Startz, R. (2001).
Macroeconomics
. New York: McGraw-Hill