NOTE
Classical Economics
English translation of the original VNote “Classical Economics”, preserving its structure with only necessary small corrections.
This is a historical learning note and may contain outdated or incomplete understanding.
Note: This preserves the original VNote structure and wording as much as possible. Only clear errors or changed definitions are corrected minimally.
1. What It Is
A school that dominated much pre-Keynesian economic teaching in the note’s historical framing.
2. Basic View
Under perfect competition, Say’s Law is used to argue that supply generates corresponding demand.
3. Argument
3.1. Production Function
The note focuses on supply and output.
3.2. Labor Market
Employment is described through labor supply and demand.
3.3. Money Market
money in circulation * velocity = price level * real national income.
3.4. Product Market
Interest rates adjust saving and investment toward equality.
4. AS-AD Curve
Aggregate supply = aggregate demand.