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Keynes Meets Adam Smith: the Different Behaviors of Manufacturers under the Two Theories When Supply Exceeds Demand from the Perspective of 4p and 4c

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DOI: 10.25236/edbm.2020.091


Yang Li

Corresponding Author

Yang Li


Adam Smith and Keynes, two economists in human history, divide economics into macroeconomics and microeconomics. They put forward their own theories to deal with different economic situations in different economic periods, and make outstanding contributions to the growth of the world economy at that time. However, the two men put forward different views and give different explanations for the merchants' behavior when supply exceeds demand. By means of comparison, this work established a manufacturer model to compare the process and results under the two business modes, and finally revealed the essential relationship between the two laws. In addition, economic benefit analysis under different modes was used to explore the causes of different economic policies. Finally, by using the relevant knowledge of advertising and marketing 4P and 4C theory, the question was observed and analyzed combined with the economic situation at that time, and the question was answered based on the difference between the two theories.


Manufacturer model, Keynes and adam smith, Supply exceeds demand, 4p and 4c theory