Classical Economics vs. Keynesian Economics Essay Example

Classical Economics vs. Keynesian Economics Essay Example Classical Economics vs. Keynesian Economics Essay Classical Economics vs. Keynesian Economics Essay Classical Economics vs. Keynesian Economics For the first time, the younger generations in America who have only studied about the Great Depression witnessed noticeable inflation, severe economic downturn and drastic measures taken by the U. S. government as the economic crisis unfolded. In order for us to make sense of what we have learned in the classrooms, we will examine the Classical and the Keynesian schools of the economic thought and the standpoint of Mr. Ben Bernanke and the current administration. Adam Smiths Wealth of Nations of 1776 marked the beginning of the Classical school of economic thought. It focuses on long run solutions and it’s most notable for the idea of the free market that can self-regulate and self-adjust towards equilibrium without any intervention. Another fundamental idea is the â€Å"invisible hand† mechanism that could move a market to its natural equilibrium. This school of thought is constructed on several key assumptions. First, Classical economists assume that the prices of wages and commodities to be extremely flexible. Under this assumption, there should be no unemployment and the commodity markets should always be in equilibrium. Second, the Classical economics is based on supply and the aggregate production in an economy must generate enough income to purchase all the economy’s output. Third, the household savings must equal to the capital investment expenditures. In case of inequality, the interest rates should be able to automatically restore equilibrium. As the Great Depression exposed several flaws with the Classical economics, John M. Keynes introduced the Keynesian school of thought. The Keynesian theory bluntly points out that there is no â€Å"invisible hand† which could miraculously get us out of economic difficulties, and that government intervention is critical to growth and stability. Whereas the Classical theory focuses on long run, Keynesian theory focuses on short run. It also states that there will always be unemployment and government interventions should be employed to assist the economy through rough times. Keynesian economics is also based on several key assumptions. First, prices for wages and commodities are not very flexible due to constraints such as laws, nions, long-term wage agreements and supplier contracts. Second, Keynesian economics stresses on demand and actual household disposable income. It points out that in reality, only a fraction of the household income is used for consumption expenditures. Third, Keynesian theory dictates that household savings and investments are based on disposable income and that the incentive to save fo r future investments lies with the expected rate of return. Keynesian theory also states that most of the economic problems could be solved with fiscal policy and monetary policy. At this point, one may ask what is our current administration’s standpoint. First, the government intervened and bailed out institutions that were â€Å"too big to fail. † Second, the government has been pumping money into the economy to create artificial inflation. Third, the Fed has been employing monetary policy to keep interest rates at their all time low in an effort to stimulate lending, borrowing and consumer spending. In light of the government’s recent actions, it becomes clear that Mr. Bernanke and the current administration are utilizing Keynesian economics to revive the economy.

Average National SAT Scores for 2012

Average National SAT Scores for 2012   Over a million high-schoolers registered for the SAT  in 2012. Their average scores provide some interesting insights into this group. Whether they wanted admission to the  top public universities  or another school of their choice, see how they performed. Overall SAT Scores for 2012 The mean is the average score of every student who took the SAT from the fall of 2011 through June of 2012. Here are the mean scores for all testers by section: Overall: 1498Critical Reading: 496Mathematics: 514Writing: 488 (subscores: multiple-choice: 48.1 / essay: 7.3) See how these compare: SAT Scores for 2013 SAT Scores by Gender As is often seen, boys were better on average in the Mathematics section and they also slightly outperformed girls as a whole in the Critical Reading Section. But females outperformed them on average in the Writing section. You can compare your scores with the average for your gender. Critical Reading:  Males: 498. Females: 493Mathematics:  Males: 532. Females: 499Writing:  Males: 481. Females: 494 SAT Scores by Reported Annual Income Higher parental income is associated with a higher SAT score. This doesnt necessarily mean that wealthier families produce smarter children. But it likely has some relationship to parents sending their children to better schools and being more willing to purchase SAT prep. They may also be more willing to spend money on retakes of the examination. $0 to $20,000: 1323$20,000 to $40,000: 1398$40,000 to $60,000: 1461$60,000 to $80,000: 1503$80,000 to $100,000: 1545$100,000 to $120,000: 1580$120,000 to $140,000: 1594$140,000 to $160,000: 1619$160,000 to $200,000: 1636$200,000 and more: 1721 SAT Scores by AP/Honors Classes It is helpful to know which courses in school tend to produce the highest SAT scores. You could guess that students who take AP courses or rigorous Honors courses are going to score higher on the SAT, but the degree to which they score better is significant. The question is which came first, the chicken or the egg? Do these students score higher due to their natural abilities, or do the courses themselves prepare students better for the SAT? Check out the stats: AP/Honors Math 1698: Mean SAT score for those enrolled in AP/Honors Math1404: Mean SAT score for those not enrolled Percentage of SAT Testers Enrolled in AP/Honors Math by Ethnicity All students: 36 percentAfrican American: 25 percentAmerican Indian: 31 percentAsian: 47 percentHispanic: 31 percentWhite: 40 percent AP/Honors English 1655: Mean SAT score for those enrolled in AP/Honors Math1404: Mean SAT score for those not enrolled Percentage of SAT Testers Enrolled in AP/Honors English by Ethnicity All students: 42 percentAfrican American: 34 percentAmerican Indian: 40 percentAsian: 44 percentHispanic: 39 percentWhite: 46 percent AP/Honors Natural Science 1698: Mean SAT score for those enrolled in AP/Honors Math1414: Mean SAT score for those not enrolled Percentage of SAT Testers Enrolled in AP/Honors Natural Science by Ethnicity All students: 35 percentAfrican American: 24 percentAmerican Indian: 28 percentAsian: 43 percentHispanic: 28 percentWhite: 38 percent 2012 SAT Scores Summary The statistics say youd have the best advantage on the SAT if you were a male of Asian ethnicity whose family who made more than $200,000 per year. You could always prepare regardless of your ethnic heritage or familial status. These statistics represent the mean but do not, of course, represent the individual. If you have nothing in common with the groups scoring the highest on the SAT, it does not mean that you cant secure a top-notch score. Start with some free SAT practice quizzes, grab some free SAT apps, and prepare yourself the best way you can.