Αποτελέσματα Αναζήτησης
Unit 1 Basic economics concepts. Unit 2 Economic indicators and the business cycle. Unit 3 National income and price determination. Unit 4 Financial sector. Unit 5 Long-run consequences of stabilization policies. Unit 6 Open economy: international trade and finance. Unit 7 Keynesian approaches and IS-LM.
Showing how a change in government spending can lead to a new equilibrium. Created by Sal Khan.
How does the aggregate supply and aggregate demand model explain equilibrium of national output and the general price level? How do economic fluctuations affect the economy's output and price level? Fiscal policy holds some of the keys.
Within the Keynesian model, if the output of an economy is less than the full-employment level, then. a. a reduction in government expenditures will direct the economy back to full-employment equilibrium. b. a reduction in wage rates and resource prices will quickly restore full-employment equilibrium.
The Keynesian approach, with its focus on aggregate demand and sticky prices, has proved useful in understanding how the economy fluctuates in the short run and why recessions and cyclical unemployment occur.
The Two Keynesian Assumptions in the AD/AS Model Figure 25.6 is the AD/AS diagram which illustrates these two Keynesian assumptions—the importance of aggregate demand in causing recession and the stickiness of wages and prices.
Policymakers looked to the lessons learned from the 1930s Great Depression and to John Maynard Keynes' models to analyze the causes and find solutions to the country’s economic woes. The Keynesian perspective is the subject of this chapter.
