What does Keynesian mean?
Keynesian is an economics term that refers to advocated government monetary and fiscal programs intended to stimulate business activity and increase employment.
limitation of keynesian theory??
Keynesian economics is free market
New Keynesians account for time in their models
In contrast with Classical economics, Keynesian economics takes a broader view of the economy
The Keynesian economic model is the view that economic output in the short term is highly influenced by the amount of spending taking place in the economy. In the Keynesian model, total spending sometimes behaves erratically, affecting the economy.
The four sectors in Keynesian macroeconomic model are business, household, foreign sector and government. The Keynesian macroeconomics focuses on a broad scale where the above mentioned sectors play an important role.
The Democratic Party is generally more supportive of Keynesian policies in the United States, although in recent years Republicans have spent considerable amounts of money as well. In the UK, the Labour and Liberal Democrat parties are more friendly to Keynesian ideology.
Classical Aggregate Supply function is vertical whereas the Keynesian Aggregate Supply function is positively sloped.
Jukka Pekkarinen has written: 'Hicks rahapolitiikan vaikutuksista' -- subject(s): Inflation (Finance) 'On the generality of Keynesian economics' -- subject(s): Keynesian economics
Keynesian model is able to show how leakages and injections can influence the economy. AD-AS model is able to show changes in prices (inflation).
Its a line lol A guideline used in Keynesian economics in conjunction with the consumption line (to derive saving) and the aggregate expenditures line (to identify Keynesian equilibrium). This guideline forms a 45-degree angle with both the horizontal income axis and the vertical consumption expenditure (or aggregate expenditures) axis in the Keynesian graphical analysis.
Kesington economics is actually Keynesian economics.
the classical believe the economy is best left to itself whereas the keynesian argued that government intervention could improve economic performance
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In a recession Keynesian and New Keynesian economists believe that the inflexibility of wages and prices are the result of?
various things like staggered prices, menu-costs, coordination failures generating multiple equilibria (through the channels of expectations), etc.
Robert Lekachman has written: 'The age of Keynes / Robert Lekachman' -- subject(s): Keynesian economics 'Greed is not enough' -- subject(s): Economic policy, Supply-side economics, United States 'Keynes and the classics' -- subject(s): Keynesian economics 'The age of Keynes' -- subject(s): Keynesian economics 'Inflation: the permanent problem of boom and bust' -- subject(s): Economic conditions, Inflation (Finance) 'The great tax debate' -- subject(s): Taxation 'Economists at Bay' 'Keynes' general theory' -- subject(s): Keynesian economics, Keynesianisme
Keynes is the last name of a person who came up with the keynesian cross diagram which has a 90 degree line that helps to show relationship between Agregate Expenditure and consumption/savings etc. in Macreconomics
Economic events during World War II demonstrated the principles of Keynesian economics in the sense that spending had gone done dramatically and the economy was stalled.
The Keynesian multiplier.
That the government oversee and regulate the balance of the economy.
The Oil Crisis of the mid-1970s.
G. R. Steele has written: 'Keynes and Hayek' 'Monetarism and the demise of Keynesian economics' -- subject(s): Chicago school of economics, Classical school of economics, Keynesian economics, Quantity theory of money
Peter K. Fleissner has written: 'The nuel' 'Stability in neo-classical and neo-Keynesian growth models' -- subject(s): Economic development, Keynesian economics, Mathematical models, Neoclassical school of economics
by looking at it
exogenous and constant
Stephen William Rousseas has written: 'Post Keynesian monetary economics' -- subject(s): Chicago school of economics, History, Keynesian economics, Monetary policy 'The death of a democracy: Greece and the American conscience' -- subject(s): History
periods of depression and inflation.
Disadvantages: -crowding-out effect -time-lag -deficit spending
What are the determinants of induced consumption in Keynesian model of a closed economy with a government sector?
Income and taxes
Classical Neo-classical Keynesian Austrian Monetarist That should get you started.
Klaus Schmidt-Hebbel has written: 'Fiscal policy in classical and Keynesian open economies' -- subject(s): Fiscal policy, Keynesian economics 'Income inequality and aggregate saving' -- subject(s): Saving and investment, Income distribution 'External shocks in classical and Keynesian economies' -- subject(s): Economic stabilization, Commercial policy, Keynesian economics, Budget deficits 'Fiscal and monetary contractions in Chile' -- subject(s): Monetary policy, Tax and expenditure limitations, Fiscal policy, Rational expectations (Economic theory) 'Saving across the world' -- subject(s): Case studies… Read More
Peter G. McGregor has written: 'Finance constraints, Keynes' Finance Motive for liquidity and monetary theory' 'An introduction to the Keynesian-Monetarist debate in an open-economy context' -- subject(s): Prices, Chicago school of economics, Wages, Keynesian economics
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What economic theories supports an increase in government spending in order to benefit private industries?
ENGELBERT STOCKHAMMER has written: 'RISE OF UNEMPLOYMENT IN EUROPE: A KEYNESIAN APPROACH'
The combination of recession and high inflation in the 1970s
This question has bad grammar. Generally speaking, Classical theories lean more towards not having the government involved in the economy. A Keynesian theorist however, is going to believe in a strong fiscal policy, as well as a central banking system to govern the economies.
The two systems aim to achieve economic growth and prevent inflation.
High inflation during the 1970s. This is the correct Gradpoint/Novanet answer. ~Chris
Shozaburo Fujino has written: 'A Neo-Keynesian theory of inflation and economic growth'
the demand for commodity x cab be described as completely price inelastic if :
APC is equal to MPC
classical: adam smith david ricardo thomas malthus keynesian: john maynard keynes
Classical economics is more of a right wing take on the economy. The essential belief behind it is that markets will sort out themselves when in trouble. Classical economists don't believe that increased demand can get us out a recession and that increasing the efficiency of the economy is the only way to achieve growth. Keynesian economics is more of a left wing take on the economy. Keynesian economists believe in governmental intervention and that… Read More
How would Keynesian economics differ from supply-side economics in attempting to fix an economy with high unemployment?
a keynesian would spend more money himself (ie, government spending like obama), a supply-side economist would give people money to spend (ie, tax cuts like bush)
In a nutshell, the key determinants that affect investment are: The Keynesian Marginal Efficiency of Capital Theory, I=f(r) The Keynesian explanation if there is non ceteris paribus, I=f(all other factors) The Accelerator Theory The role of firms' profits And then a collection of the other factors, being exchange rates et cetera.