macro

CLASSICAL MACROECONOMICS Classical macroeconomics is the theory and the classical model of the economists Adam Smith, David Ricardo, John Mills and Jean Baptiste Say. Below the assumptions of the classical macroeconomics are described. 1. Assumptions:  Competitive markets: Classical theories all make many assumptions about the markets and their competitiveness.these assumptions are that all the markets are easy to enter and exit. No monopoly elements are present in the market to prevent newcomers from entering the …

…full employment and flexibility of price, wage and interest, physical output would be constant. As a result, a change in the amount of money supply will cause a proportional change in the general price level.This is called "The Quantity Theory of Money ". REFERANCES: 1. Macroeconomic Analysis; SHAPHIRO, Edward 2. Macroeconomics Analysis And Policy; REYNOLDS, Lloyd G. 3. Economics; LIPSEY, Richard G. - STEINER, Peter O. – PURVIS, Douglas D. 4. Principles Of Economics; SCOTT, Robert Haney – NIGRO, NicCreated by