177 Why It Matters: Classical and NeoClassical Model

Adam Smith Wealth of Nations

The founding father’s built their knowledge of the US economy based on the work of Adam Smith in his book Wealth of Nations. Adam Smith is considered the “Father or Economics”.  In this lesson you will learn about his model of how the invisible hand allocates scarce resources.

During this lesson you will:

  • Understand the tenets of Classical and Neoclassical Economics
  • Understand the assumptions of the models
  • Apply the tenets through the aggregate supply and demand model

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ACC Principles of Macroeconomics by Lumen Learning is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.

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