Hey there! Sign in to join this conversationNew here? Join for free
    • Thread Starter


    I'm just going over past paper questions on my macroeconomics exam and have the question:

    Explain the workings of the Classical Model of the economy and illustrate them by discussing the effect of a rise in government spending financed by borrowing.

    How would you attack that question?

    I have all my notes in front of me, such as derivation of the AD/AS curves, production functions, marginal product of labour curve, equilibrium, loanable funds market, demand for money etc.

    Not looking for a over explained answer, just a guideline!


    I would look at how a classicist tackles fiscal policy. I have only studies Keynesian fiscal policy thus far so cant help you on that.

    Start by exploring the mechanics of fiscal policy using ISLM if you were taught that then move on to Classical opinions and finish by evaluating their effectiveness.
Do you agree with the PM's proposal to cut tuition fees for some courses?

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.