The new spec is keen to develop students knowledge of economic thinkers such as Keynes, Smith, Hayek etc. I suggest you spend some time this week looking at what their key ideas are (basically free market Vs intervention approach.
Here is a summary of Keynesian economics....please watch and come to school to discuss (I'm not in on Monday!)
Really useful when looking at questions such as:
An understanding of Keynesian ideas can be helpful in evaluating macroeconomic stability in terms of prices, jobs and incomes.
Keynesians believe that free markets are volatile and not always self-correcting in the event of an external shock
The free-market system is prone to lengthy periods of recession & depression
Economies can remain stuck in an “underemployment” equilibrium
In a world of stagnation or depression, direct state intervention may be essential to restore confidence and lift demand.
Keynes was one of the first economists to criticise the profession for adhering to unrealistic assumptions
“In terms of economic policy Keynesian economics has only one proposition: that governments should make sure that aggregate demand is sufficient to maintain a full-employment level of activity.”
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