ECO-2013 Lecture Notes - Lecture 11: Friedrich Hayek, John Studebaker, Serfdom
Document Summary
List the key arguments in keynesian economics: 2. Describe the multiplier process then identify potential problems with the process: 3. Define a budget surplus and deficit: 4. Differentiate between restrictive and expansionary fiscal policy: 5. Explain how fiscal policy is implemented: 6. The great depression and macroadjustment process: john m. keynes. Resource prices and interest rates are not very flexible so they (cid:449)o(cid:374)"t di(cid:396)e(cid:272)t a(cid:374) e(cid:272)o(cid:374)o(cid:373)(cid:455) to e(cid:395)uili(cid:271)(cid:396)iu(cid:373) Changes in output will direct an economy to equilibrium. 1935, about his upcoming book the general theory of employment, According to the views now dominant, the question is no longer how we can make the best use of the spontaneous forces found in a free society. If c, i, and x are stagnant or declining, increase g. Y = c + i + g + x. After the multiplier kicks in, c, i, and x will increase. Ad shifts right until full employment is reached: key points:
