Discussion: Economics and Policy - Advantages and Disadvantages of Says/Keynes Law (Ch.11)

Practical Advantages and Disadvantages of Says/Keynes Law

Section 1 presents two of the major schools of economic thought - Neoclassical and Keynesian. Neoclassical economists subscribe to Says Law, which states that Supply is the primary driver of an economy. Other economists subscribe to Keynes Law, which states that Demand is the primary driver of an economy. For this discussion, your task is to:

Analyze each of these Laws (Says and Keynes). Present a scenario, one for each of these laws, that accurately depicts the idea behind them.

Explain why there is merit to considering each of these views in policy discussions.