Question

What is the difference between

Neoclassical Counterrevolution -

Answers for two questions (Reason for underdevelopment and the cure for it)

and Keysian Economics in the Second globalization.

Define and compare the types of institutional differences between developing and developed nations.

Answer 1

1)Reasons for underdevelopment are:

• Illiteracy
• Traditional structure of the nation
• The attitude of the population being traditional
• Communication problems among the nation
• Infrastructure being poor
• Labour in the nation being low class
• Economic problems
• Poor public health

Cure for underdevelopment are:

• Poverty needs to be diminished and other developed countries must help fight poverty
• Proper employment must be given to the able and skilled.
• Good trade resources and routes must be open.
• Sustainable development schemes must be started
• Income generation should rise
• better medical facilities
• Better transportation etc.

2) Kaynesian economics is based on the theory that economic output is largely depended on aggregate demand and includes macro economy. A group of factors influences this type of economy and aggregate demand does not equal the productive capacity of the economy.