discuss the keynession classical and non classical?

Answer 1

In Keynes's theory, general (macro-level) trends can overwhelm the micro-level behavior of individuals. Instead of the economic process being based on continuous improvement in potential output, as most classical economists had believed from the late 1700s on, Keynes asserted the importance of aggregate demand for goods as the driving factor of the economy, especially in periods of downturn. From this he argued that government policies could be used to promote demand at a macro level, to fight high unemployment and deflation of the sort seen during the 1930s.

Then....

Neo-Keynesians added the infamous Phillips Curve (Phillips, 1958; Lipsey, 1960) to the system in order to enable them to account for inflation. The international sector was incorporated into an extended IS-LM system known as the Mundell-Fleming model (Mundell, 1962). Much work also went into providing "microfoundations" for the basic Keynesian relationships: the consumption function was formalized as a utility-maximizing problem by Franco Modigliani and Richard Brumberg (1953), the investment function was derived from profit-maximization by Dale W. Jorgensen (1963) and Robet Eisner and Robert H. Strotz (1963); the money demand function derived from utility-maximization by William J. Baumol (1952) and James Tobin (1956, 1958); the transmission mechanism (i.e. the impact of LM on IS) was expanded and given more detailed analysis by Lloyd Metzler (1951), James Tobin (1961, 1969) and many others.