Saved Bookmarks
| 1. |
In a developed economy Keynesian budgetary policy is more effective compared to classical budgetary policy. Can you agree with this statement? Justify your answer. |
|
Answer» Yes. I agree with this statement. Because in the developed economy the role of government and the private sector is more desirable. There will be situations of the business cycle in such economies. General overproduction and underproduction are common features. On such occasions, the classical policy will not properly work. Keynesian ideas will help the proper functioning of the developed economies. |
|