Keynesian Economics And Effective Demand - Deepstash

Keynesian Economics And Effective Demand

  • Central to Keynesian economics is an analysis of the determinants of effective demand. 
  • The Keynesian model of effective demand consists essentially of three spending streams: consumption expenditures, investment expenditures, and government expenditures, each of which is independently determined. Foreign trade is ignored.
  • Keynes attempted to show that the level of effective demand, as determined in this model, may well exceed or fall short of the physical capacity to produce goods and services. 
  • He also proved that there is no automatic tendency to produce at a level that results in the full employment of all available human capital and equipment. His findings reversed the assumption that economic systems would automatically tend toward full employment.

29

202 reads

CURATED FROM

IDEAS CURATED BY

lil_ww

"In fact, the confidence of the people is worth more than money." ~ Carter G. Woodson

The idea is part of this collection:

Deep Dive Into The Fashion Industry

Learn more about economics with this collection

The history of fashion

The impact of fashion on society

The future of the fashion industry

Related collections

Similar ideas to Keynesian Economics And Effective Demand

Keynesian Economics

Keynesian Economics

John Maynard Keynes (1883-1946) was interested in the level of national income and the volume of employment rather than in the equilibrium of the firm or the allocation of resources. 

He was still concerned with the problem of demand and supply, but “demand” in the Keynesian model means the...

Read & Learn

20x Faster

without
deepstash

with
deepstash

with

deepstash

Personalized microlearning

100+ Learning Journeys

Access to 200,000+ ideas

Access to the mobile app

Unlimited idea saving

Unlimited history

Unlimited listening to ideas

Downloading & offline access

Supercharge your mind with one idea per day

Enter your email and spend 1 minute every day to learn something new.

Email

I agree to receive email updates