ECON 101 Lecture Notes - Lecture 7: Progressive Tax, Money Supply, Macroeconomic Model
Document Summary
The great depression exerted a huge impact on macroeconomics. The national income accounts that we use to measure gdp were developed during this era. Several of the basic concepts of macroeconomics and much of the terminology were initially introduced during the 1930s. Keynesian economics was also an outgrowth of the great depression. John maynard keynes was probably the most influential economist of the 20th century. Keynes developed a theory that provided both an explanation for the prolonged unemployment of the 1930s and a recipe for how to generate a recovery. Keynesian analysis indicated that fiscal policy could be used to maintain a high level of output and employment. The keynesian view dominated macroeconomics for the. Keynesian economics began to wane during the 1970s because it was unable to explain the simultaneous occurrence of high unemployment and inflation. But, the severe recession of 2008-2009 generated renewed interest in.
