New World Encyclopedia: "Keynes and Classical Economics"

Read this article for more information about these competing perspectives. This section contains four subsections: "Wages and Spending,” "Excessive Saving and Interest Rates,” "Active Fiscal Policy,” and "Multiplier Effect.” Focus your attention on the portions within the four subsections that emphasize the short-run. You may observe that the differences among the various subsections tend to deal with the underlying nature of change.