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The changes in an economy is caused by the rational cause theory. It defines the choices made by individuals in an economy based on rational movement towards maximum benefit, on an aggregate created a said change in the whole economy. The study of economics based on this theory is termed as neoclassical economics as it combines the classical and modern approaches together.
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Keynesian economics developed during the depression from 1930-40 based on how the markets and economies react in times of recession. These principles opposed some views from the classical times and proposed a new school of thought. Keynesian economics was adopted by most of the developed countries till the oil shock and continues to be the applicable economic theory in times of recession.
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Alacrity, vitality, satisfaction, accomplishment etc; are some of the adjectives used to describe a condition of “wellness or welfare” this condition can be measured both for a group and individuals based on the availability of opportunities and choices for that group or individual. The demand and supply functions between these opportunities and individuals or groups is studied under welfare economics.
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This is a term used to indicate the processes and analysis involved in improving the economies of the developing or underdeveloped countries. Many countries in the third world are under this classification today based on the minimum scale for economic development. The internal and external functions are studied to improve the standard of life, availability of resources and opportunities.