Classical school of thought prevails in the shoty run and Keynesian school of thought dominates the long run. Why?
Dear Student
Here the question asked is incorrect, the correct would be " Classical school of thoughts prevail in long run and keynesian school of thought dominates the short run"
Because as per the classical theory there is no need to government intervention supply itself generates it demand and that would be in long run whereas according to keynesian theory government need to intervene time to time to generate new employment opportunities and to pull economy from low level of income and demand.
Thus we can said that Classical school of thoughts prevail in long run and keynesian school of thought dominates the short run.
Regards
Here the question asked is incorrect, the correct would be " Classical school of thoughts prevail in long run and keynesian school of thought dominates the short run"
Because as per the classical theory there is no need to government intervention supply itself generates it demand and that would be in long run whereas according to keynesian theory government need to intervene time to time to generate new employment opportunities and to pull economy from low level of income and demand.
Thus we can said that Classical school of thoughts prevail in long run and keynesian school of thought dominates the short run.
Regards