Answer ONE of the following questions. Each question requires you to discuss TWO schools of economic thought in terms of the nominated real world example:
1 What are the similarities and/or differences between Classical and Neoclassical analyses of capitalism? Use the Australian economy to illustrate your answer.
2 Some economists assert that a market economy tends towards equilibrium. Others argue that capitalism tends toward recurring economic crises. What economic theories support these two different views? Use the post-Second World War growth period and the 2007 Global Financial Crisis to illustrate your answer.
3 Outline the views of John Maynard Keynes about the features of the capitalist economy. How did Keynes’ views differ from or were similar to those of neoclassical economics? Use the Australian economy post-Second World War to illustrate your answer.
4 How does Keynesian economics differ from Marxian economics in its explanation of the capitalist economy and its policy prescriptions? Use the Australian economy post-Second World War to illustrate your answer.
