ECO 2013 Lecture Notes - Lecture 14: Cash Flow, Real Interest Rate, John Maynard Keynes
Document Summary
All of chapter 10, what we cover in 12, and sections 1 and 2 in chapter 13 will be on the exam. Review will be on friday october 7, 2016. Exam is on monday october 10, 2016. Chapter 12- aggregate expenditure and output in the short run. Background/ historical relevance: classical theory of economic changes in national income/ gdp are dependent on changes in capital and technologies available. Neither changed during the great depression: following the great depression, a british economist named john maynard. Keynes wrote a book called, the general theory of employment, interest and. Short-run economic fluctuations can occur because a lack of aggregate demand for goods and services. Firms sell about as much as they expect. Employment and production don"t change (selling as much as they are making: case 2. Total spending increases more than production does. Total spending decreased more than production we did not shop as much as they though.
