What Is Keynesian Economics?
The older view held that supply creates its own demand; Keynes said it fits only a special case.
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1.What did Keynes say decides whether we all have jobs?
The older view held that supply creates its own demand; Keynes said it fits only a special case.
2.What did Keynes mean by animal spirits?
When confidence fades, firms invest less and jobs follow.
3.In the cafe town, 80 percent is spent each round from a 1,000 push. What is round two?
Rounds one and two make 1,800; rounds one to four bring the running total to 2,952.
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Sources (4)
- Keynes, J. M.: The General Theory of Employment, Interest and Money (1936), Kap. 1, 3, 12
- Eigene Rechnung: Multiplikatorkette im Cafe (Uebungsaufgabe)
- Ramey, V. A.: Ten Years After the Financial Crisis: What Have We Learned from the Renaissance in Fiscal Research? NBER Working Paper 25531 (2019); Journal of Economic Perspectives 33 (2), S. 89-114
- Friedman, M.: The Role of Monetary Policy, American Economic Review 58 (1), 1968, S. 1-17
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