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assumptions that classical economists built around their macroeconomic understanding the underlying meaning of this classical dichotomy, we take an.Economics Concepts Explained | FINANCE & DEVELOPMENT iii. Back to Basics: Economic concepts Keynesian economics dominated economic theory and pol-. Classical Economics. • Say's Law. • Supply creates its own demand. • Saving is irrational. • Products are paid for with products, so money has. His theories of economic growth, value and distribution inspired later classical economists. • Provided a grand vision of the free market economy, guided by the. The shortcomings of the Classical school became extremely evident when its practitioners were unable to explain the extraordinary decline in economic activity