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Comparison of Classical and Keynesian Economic Models
| Feature | Classical Model | Keynesian Model |
|---|
| Primary Focus | Supply-side (Say's Law) | Aggregate demand-side |
| Market Mechanism | Automatic full employment | Underemployment equilibrium possible |
| Price/Wage Flexibility | Perfectly flexible | Sticky/Rigid |
| Savings-Investment | Balanced by interest rates | No guaranteed equality |
| Economic View | Self-correcting economy | Requires demand management |
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