Question

2B. What is the theoretical distinction between the Progressive Theory benchmark for a well-performing economy and the Keynesian Theory benchmark for a well-performing economy.

2C. In the Progressive model, what is the primary requisite for an economy to be able to maintain a level of full employment.

Answer 1

2B. The main theoretical distinction between the Progressive Theory benchmark for a well - performing economy and the Keynesian Theory benchmark for a well-performing economy is the presence and to some extent acceptence of inflation in Keynesian theory. Most of other components are more or less same, such as government intervention for maintaining full employment and equilibrium between aggregate demand and aggregate supply.

2C. In the progressive model, the primary requisite for an economy to be able to maintain a level of full employment is need of government intervention, equality of income level, and a stable wage and price level.