Final answer:
Keynesians and classical economists differ in their views about the speed of macroeconomic adjustment, with Keynesians arguing for potentially long periods before reaching long-run equilibrium, and classicals stressing the importance of natural adjustments over time.
Step-by-step explanation:
The debate on macroeconomic adjustment speed centers around how fast wages and prices stabilize, and the economy returns to its potential GDP. Keynesian economists believe that the economy can take a significantly long time to adjust, which can render neoclassical theory less relevant in practical situations. They are particularly concerned with sluggish wage and price adjustments that can prolong recessions.
On the other hand, neoclassical, sometimes referred to as classical economists, maintain that even if the adjustment takes years, their perspective is vital for a comprehensive understanding of the economy. They emphasize that in the long run, flexible wages and prices will naturally lead the economy back to potential GDP levels, with the government's role being to focus on long-term growth and inflation control rather than short-term fluctuations.
In summary, Keynesian and classical schools of thought differ in their beliefs about the economy's return to long-run equilibrium, with Keynesians highlighting the potential for lengthy adjustments during recessions, and classicals arguing for the natural, albeit longer-term, adjustments of the economy.