CLASSICAL ECONOMICS
The term 'Classical economics' was invented by
Karl Marx to refer to the economic theories of
David Ricardo and his predecessors, including
Adam Smith.
,Classical economics refers to the orthodox
principles of economics
The leaders of the school were David Ricardo,
Malthus , Senior, J.S.Mill , J.B. Say and A.C. Pigo
Classical macroeconomics was based on the
assumption that the economy remained continuou
at full employment and that departures from this
were strictly temporary
, ELEMENTS OF THE
CLASSICAL MODEL
1. Full employment
2. Say’s Law of Markets
3. Wage price flexibility
4. The Quantity Theory of Money
5. Real Theory of interest
The term 'Classical economics' was invented by
Karl Marx to refer to the economic theories of
David Ricardo and his predecessors, including
Adam Smith.
,Classical economics refers to the orthodox
principles of economics
The leaders of the school were David Ricardo,
Malthus , Senior, J.S.Mill , J.B. Say and A.C. Pigo
Classical macroeconomics was based on the
assumption that the economy remained continuou
at full employment and that departures from this
were strictly temporary
, ELEMENTS OF THE
CLASSICAL MODEL
1. Full employment
2. Say’s Law of Markets
3. Wage price flexibility
4. The Quantity Theory of Money
5. Real Theory of interest
