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.