classical and Keynesian views of unemployment

Choose one of the following topics.

Topic 1. “If production results in income and income is the source of spending, it would seem that the production of a full-employment economy would automatically guarantee enough spending to sustain itself. How, then, can unemployment occur?” Explain in detail (hint: review Say’s Law as explained in the chapter).

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Topic 2. Contrast in detail the classical and Keynesian views of unemployment. Explain in detail and consider the role of flexible versus ‘sticky’ prices.