Question

Would you say your economic philosophy leans towards Keynesian or non-Keynesian approach? Provide at least two reasons why you support that approach.

Answer 1

My philosophy leans more toward the Keynesian side, the reasons are:

• There are certain lags active in the economy i.e. the wages and prices are sticky in the market and it doesn't change as quickly as predicted by the non keynesian models. Keynesian model is comprehending the economies much more accurately.
• A government role is important in the market economy as the market economy tend to overlook the consumer who doesn't have much money power, here the government interevention allows for the market demand to increase and help raise the GDP, it is not possible in other models.