Milton Friedman revolutionized economic thought through his monetarist theories, advocating for free markets, limited government intervention, and the permanent income hypothesis in consumer behavior.

Economic thought progresses from ancient philosophy to modern theories, reflecting societal changes, key figures, and interdisciplinary approaches addressing global challenges like inequality and climate change.

Economics influences government policies and individual financial decisions, shaped by major thinkers like Adam Smith, John Maynard Keynes, and Karl Marx, whose theories impact modern society.

The invisible hand represents how individual self-interest in free markets can lead to collective societal benefits, influencing modern economic theories and policies on resource allocation.

Keynesian economics advocates for government intervention to manage aggregate demand, while classical economics emphasizes free markets and minimal government interference for economic stability and growth.

Applied economics uses theoretical concepts to address real-world issues, employing data analysis and statistical methods for informed decision-making in business, government, and policy formulation.