Think about 4 product classifications. Explain and support the pricing and distribution strategies that Analytically speaking, what is left behind the Classical/Marxian School? Do you find Classical School’s analytical framework still useful for contemporary economics? In what ways? Discuss. (in your answer consider the analytical tenets of the Classical School as a whole). The Classical/Marxian School of economics

The Classical/Marxian School of economics

The Classical/Marxian School of economics has long been a major influence in economic thought, yet in recent years its analytical framework has been largely overshadowed by the emergence of Neoclassical economics. While the Classical/Marxian School’s contributions to economic theory remain significant, its analytical tenets have become increasingly outdated in contemporary economic discourse. The Classical/Marxian School was a major proponent of the labor theory of value, which posits that the true determinant of value is the labor power expended on a good or service. This theory was a major departure from the prevailing notion in the 19th century that value was determined by the number of resources used in production. While this theory has been largely supplanted by Neoclassical models of value, it still remains useful in certain contexts (Romer, 2020). For example, it can be used to explain the relationship between wages and the cost of living in a particular area, or the value of labor power across different markets. The Classical/Marxian School also emphasized the importance of aggregate demand and the role that monetary and fiscal policies could play in influencing it. This notion of aggregate demand has been further developed by modern economists and remains an essential component of contemporary economic theory (Mankiw, 2019). The Classical/Marxian School’s emphasis on the role of government in managing. Cont…