The Key Difference Between Keynesian and Classical Economics

keynesian vs classical economics
Feature	Keynesian Economics	Classical Economics
Founders	John Maynard Keynes	Adam Smith, David Ricardo, and other 18th-19th century economists
View on Markets	Markets can fail and may not always clear; government intervention is necessary.	Markets are self-regulating and tend to clear on their own.
Focus	Aggregate demand drives economic output and employment.	Supply-side factors and production drive economic growth.
Role of Government	Active role through fiscal policy to manage demand and stabilize economy.	Limited role; markets should operate freely without intervention.
Unemployment	Can persist due to insufficient demand; needs policy to reduce.	Temporary and self-correcting through wage and price adjustments.
Price & Wage Flexibility	Prices and wages can be sticky, delaying market clearing.	Prices and wages are flexible and adjust to restore equilibrium.
Long-Run View	Focuses on both short and long run; short run often prioritized.	Long-run equilibrium is key; markets eventually reach full employment.