Why might the keynesians be considered to be demand siders while the classicalists could be considered to be supply siders?

Answer 1

Keynesians are considered demand siders because they emphasize the importance of aggregate demand in driving economic activity, advocating for government intervention to boost demand during downturns. They believe that insufficient demand leads to unemployment and economic stagnation, thus supporting fiscal policies to stimulate consumption. In contrast, classicalists are seen as supply siders since they focus on the role of production capacity and supply-side factors like investment, labor, and technology in fostering economic growth. They argue that reducing barriers to production and allowing the market to operate freely will lead to long-term economic expansion.