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In this video, I have discussed the demand side of classical economics. The discussion starts with QTM & Cambridge approach of money demand - which in itself becomes an implicit theory of aggregate demand. Our discussion leads to the following conclusion - " there is a direct & proportional relation between money & prices". Then, we move on to the classical theory of interest rate - this theory is pivotal in the classical system because interest rates act as shock absorbers so that exogenous changes do not affect AD. Finally, we discuss the policy implications of a fiscal as well as a monetary policy in the classical scheme of things. Here a noteworthy aspect is the supply side implications of a tax change, which can have an impact on equilibrium output & employment. This chapter of froyen is extremely important for students of economics hons, general elective students as well as those who are preparing for UPSC CSE with economics optional, IES aspirants & RBI Grade B DEPR aspirants. Best, Siddharth