1) A small caribbean islands economy depends on tourism. However in recent times, it has seen much less economic activity. Its government decides to let the market correct the situation------Hayek
In contrast to Keynes, Hayek trusted that certifiable recuperation from a post-blast crash called for satisfactory spending as well as for an arrival to economical generation - creation cleansed of blast period mutilations caused by pain free income.
Hayek was expelled as somebody who needed to "exchange work, sell stocks, sell the agriculturists, etc.
2) Flour prices have risen in a country where bread is a stable part of the diet. As a result, bread prices have risen tremendously. In an effort to make bread affordable for it's citizens, the government has limited how much bakers can charge for bread.------------Keynes
During the Great Depression of the 1930s, existing financial hypothesis was not able either to clarify the reasons for the extreme worldwide monetary crumple or to give a sufficient open strategy answer for kick off creation and business.
British economist John Maynard Keynes led an unrest in monetary reasoning that upset the then-overall thought that free markets would consequently give full business—that will be, that everybody who needed an occupation would have one as long as laborers were adaptable in their wage requests.