Comparison of 21st Century and 20th Century Contemporary Economics Theories

CONTEPORARY BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 2............................................................................................................................................2
Comparison between emerging theories & models in 21st century contemporary economics
with those of 20th century.............................................................................................................2
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Contemporary business refers to ideas and circumstances of current time in business
environment. By word contemporary means belonging to same period or of present era. The
current study is based on comparison between emerging models and theories in 21st century
contemporary economics with 20th century. Furthermore, this report explains both theories
relation to modern business practices.
TASK 2
Contrast between rising theories & concepts in 21st century contemporary economics with those
of twenty century
Keynesian economics is a emerging theory in 21st century which is quite dissimilar from
the other one used in 20th century in context of law supply and demand (Jespersen and Olesen,
eds., 2019). According to this concept government must increase demand to increase growth
rather than before. It believes that need or requirement of consumers is key driving force in an
economy that affect business performance and practices rather than before. As an outcome, it
contributes expansionary fiscal policy. The primary techniques of this theory are government
spending on unemployment benefits, infrastructure and education. John Maynard Keynes is the
developer of this theory he is British economist who found this concept in middle 1920s to
1930s. It was radical first one argued that government spending or investment was a important
factor driving aggregate demand which means an maximize in spending would enhance demand.
According to theory spending to maintain full employment is the best and most essential thing as
it helps to balance supply and demand of products and services (Chen, 2020). By investing in
employment opportunities government enhance the strength of corporate sector. All these efforts
will increase the demand of customers in effective manner which in return maximize profitability
and sales.
On the other hand, Mountifort Longfield’s supply and demand theory suggested that
values were identified by supply & demand of products or services based on customer’s
satisfaction, while distribution would be determined by element productivity. This model avoids
belief that wages would remain stuck at subsistence stage (Reisman, 2018). Appropriate