The economies of the classical schools through supply-side theory (supply - side) stressed the need to promote savings and investment if the economy towards growth; Keynes also it gave a more comprehensive model - model the total supply curve and aggregate demand curve (AD - AS) for connecting the inflation and growth. According to Keynesian theory, in short, there will be trade-offs between inflation and growth. That is, want to achieve high-speed growth, it must accept a certain inflation rate. During this period, growth and inflation move in the same direction. After this period, if we continue to accept the rising inflation, the GDP growth will not increase, but tends to decrease.
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