Why did Keynes reject the classical theory?

Keynes rejected the Classical theory (by which he meant what we nowadays call the Neoclassical theory) because it predicts that long-term unemployment is impossible. read more

Keynes rejected the Classical theory (by which he meant what we nowadays call the Neoclassical theory) because it predicts that long-term unemployment is impossible. This did not match what he saw happening during the 1930s, so he came to the conclusion that the Classical theory was wrong. read more

Supply creates its own demand" is the formulation of Say's law. The rejection of this doctrine is a central component of The General Theory of Employment, Interest and Money (1936) and a central tenet of Keynesian economics. read more

1. Discuss why the classical economists believed that a market economy would au-tomatically tend toward full employment. 2. Explain why Keynes rejected the views of the classical economists. 3. Compare the views of Keynes and the classical economists with regard to the proper role of government. read more