Name Two models that are used to explain economics?

1. The Classical Economic Model: This model is based on the principles of free markets, rational decision-making by individuals, and the idea that the economy will naturally reach equilibrium without government intervention.

2. The Keynesian Economic Model: This model is based on the ideas of British economist John Maynard Keynes, who believed that government intervention is necessary to stabilize the economy during times of recession or depression. Keynesian economics emphasizes the role of aggregate demand in determining economic output and employment.

1. Classical model: This model emphasizes the long-run and assumes that the economy is self-regulating. It argues that the economy will naturally move towards full employment and that government intervention is generally harmful.
2. Keynesian model: This model emphasizes the short-run and argues that the economy can be stuck in a period of high unemployment without government intervention. It argues that government spending can help to stimulate the economy and reduce unemployment.