(1a) Economists tend to fall into two distinct camps where government intervention in the economy is concerned.’Keynesian’ economists favor active policymaking based on thePhillips Curve and NAIRU theories. These theories purport a possibletrade-off between unemployment and inflation and suggest thatappropriate policy can be enacted to guide us back to a soft landingwhen business cycles create havoc within the economy.Economists who align more with the ‘Classical’ school would have a’leave it alone’ (Laissez Faire) attitude and would oppose activepolicymaking. ‘Rational Expectations Theory’ (a ‘new classicalapproach’) suggests that people figure out what will happen based onpast policy changes, therefore rendering active interventionineffective.In this week’s Discussion area, examine the following:In your opinion, which theory is better? Why?