This Article will help you to learn about the difference between classical capital theory, the neoclassical loanable funds theory and the Keynesian liquidity preference theory. Difference between Classical, Neoclassical, and Keynesian Theories of Interest Difference # Classical Theory: 1. Definition of Interest - According to the classical economists, interest is a reward paid for the use of capital. 2. Nature [...]
The upcoming discussion will update you about the difference between short-run and long-run production functions. The firm may change only the quantities of the variable inputs in the short run when the quantities of the fixed inputs remain unchanged. That is, in the short run, the output quantity can be increased (or decreased) by increasing (or decreasing) the quantities used [...]
The upcoming discussion will update you about the difference between Lewis model and Ranis-Fei model. According to Rains-Fai point (end of the first phase) in Fig 1 shows the Lewis turning point i.e. the point after which the supply curve of labour in the industrial sector will turn upwards. However Lewis himself did not consider this point as the upward [...]