» 2 2 18” CENTURY: oupar increase! divisions of labo: productivity mercantiliom gimed to accumulate wealth ‘by obtaining mare gold A silver vie trade. Tabour theory oF value? valut| price of good is the Gor wae early mwwived Controlling the aspects oF economy sum of valet of all Jabour used m producing goed TFG: classical school oF economics Value oF product = deteemined From facter> related to supply oF prod father of classical econd [Ad ain smi) polished discipline oF economies Sinvisible hand”: private producers are left dione to decide what so how to produce based on what consumers want (ho gov Intervention) Tet ook on medern econd Ep country's weslthis based on value of GiBsipredueed = smite ‘Economy based on FEEMOFKENS priority of gov shid bet] | jaleampettion: wERIISE HEME oF rhe] | Ful employment oF reaurce® 2 greater prosperity for economy Tecognized the benefits of roducer: selfuare Aivisionof labour oo consumer: gamit Producti T when 9 See task is divided CAS iv” CENTURY * David Ricardo contributed 32 internarional trade. country’s SaHaE ‘marginal revolution due to marginal decision making consumers decide whether te consame thentst unit oF agood baseden atlity prod-decide whether to produce based on rhe extra ‘countries should specialize in production of diff goods 30 trade freely to global output? costo predacing law of “comparative advantage” instead of absolute adv. used O% basis oF int. trade GEOMRSSICA econs emphasise demand & develop comple x mathematical Fx Jean-Baptiste Soy (Say's Jw of markets) In favourotiree 4 markets 0 Free trade Alfred Marshall Cfiaciples of Economics, 1890) present the visual sipply © demand graphical model. Tproduction of goods is the source of all demand “supply created its owndemand.' ‘here Samay ve on aampmedgstion) (02° core SB ef goods. consumer ® producers are optimizers in cetking the best outcome (uty, profit) economic gronth: generating Farther demand fer products —— interventions thab they hy the Fall jatfo abt there restricts free markets options 2 can make jwdgmts instantly abt the benefit reer g 1870: neoclassical school of | “rational cheict theory] "” ecenemics William Jevons Lesa Walras classi On: fective, 4 sical econs: subjective philosophical neo eG 'ob;, Science Jalut [price ot product is determined by vale that consumers place (amteof atriity oD demand f VU Y uJ : U Karl Mars (1813-1883) srevolutionary Communist ~ Das Kapital ~ unemployment T ; mit a = sociely’s ability to produce ~ gov has to fake over sss s a = wil\ gron Fastte than ua its abihty toconsume aka. left of ideolegical OSs O° CENTURY : shid operate within A more than owned y ce CEE CC all economic agents dheir means xf not Spent Keyntaian macroecons = 19203 1930s ,Outish economist John Maynard “counter-eyelieal gov pokieies heynes = durrng recession ,gav shid aggregst® demand ~lexpansionary #/scal policy Polished in 1426 m The General ‘Theory of Empleyment, intertot O Neney Faplaly growing economy w)inflatien risk = deereast agg.demand wiemtraction ay fiseall peli cy Tiaterwention shia be Jimited 0 focased on sspply Monetarism Caen Classica) fcons) - milton Friedman = country’s central bank shid nok use manerary| policy 10 demand by money Supply = Jead to higher mélation Tale of govThelping ereare conditions for max procction demand detecmings the national: meome sinatead of meome Centra] bank money supely but] ™F consistent wil gronith rate of national incomes Faral demand = aggregate demand Tssue oF massanem ploy Tesread of demand managemt, control money sieply] during the Great Depression Tationalism via Hheery of fahondl expectations hy demand < goods stgmlac_cendasion, abt mflation as monctarists Teed fo inerease aggregere Fower laces Je developed 4 applied hypothesis of demands to get out of cational expectations depression conclusion: gov shldinever try fomanage demand by cremtingumcentives, stpply can be focused te promett economic growth: CEE KE yi" CENTURY: Fate Ranorth’s embedded eons - quaicewlarmecemiamy featurng mmrecdependence berween eeons socery ® EnVIFONMENT Reqnes recommended: ~ Fisca) policies relstedte go spending © tanation ~ monetary policies ritd fo mtecest rages wo money sapely neoclassical approach|assumes consumers behave rationally 0 decides bascd on costobenetih calculations humans are maramaysiranional Polacs based on frad-teon zheheviewrahecons is born models resulted in [SFO preecenpation wi econ gromth a aeregora For “ve rmpocts °F extreme inequsiities ef incom’ Ccombines insights °F psy chology RichsirehRAler Sogs: ~ AESELSETED) models ave BASE | ppl that dont exier A wealth — bhyrl ceons aims te understandithe simporiant that [hima rights AEEISVORI MOK Ingeprecess of actus of every petoon 1 Reet airhemikht hamans means of the planet = consumers cen be Audiged fe make chotees volantonly that are better Referring to the doughast for them © the sodety economy = gcia) foundation (ford _ eau 40) there is awareness that tremendous Rallenges FoRUsFAMaBI is bes of lintar economic activity ath’ Jake 2 Make > Waste ervironnet) Wits afrer usage, prod are dispooed Ceausienipaniatven > + overexpinration A degradation of natural resources Giycular economy Make 4 Use > Resell /Refurbioh A> Runensfactare > Take a make D ‘regenerative x restorative approach] sams to be lsngalastias + aligns ~| Ssramable Development Goals] C82) + saves cost D comply w)natvona) Y Y U U U MY Y Y Y Y Y tavironmental reqalarions Ks