Final answer:
The four theoretical approaches to economic value are Neo-Classical Economics, Keynesian Economics, Monetarism, and Functionalism, each offering a unique perspective on the regulation of markets, the role of government intervention, and the influence of money supply on economic variables.
Step-by-step explanation:
The four major theoretical approaches to economic value encompass a range of economic viewpoints that guide how policy and economic theories are applied in practice. Not explicitly listed in the material provided, these approaches generally include:
- Neo-Classical Economics - Defined by thinkers such as Adam Smith, the Neo-Classical approach emphasizes the role of supply and demand in setting prices and allocating resources efficiently. It operates under the belief that markets naturally regulate themselves when free of government intervention.
- Keynesian Economics - Developed by John Maynard Keynes, this perspective advocates for government intervention, especially fiscal policy, to moderate the boom and bust cycles of economies and to manage recessions by influencing aggregate demand.
- Monetarism - Championed by Milton Friedman, Monetarists focus on the role of government in controlling the amount of money in circulation, arguing that variations in money supply have major influences on national output in the short run and the price level over longer periods.
- Functionalism (Sociological Perspective) - While not a direct economic theory, functionalism considers economic functions to be essential for the survival of the society. This perspective would examine how economic phenomena serve to maintain social order and balance.
Each of these approaches provides a different lens for analyzing economic issues such as money supply, inflation, and recessions, enabling a comparison of their effects and implications for policy.