Keynes General Theory of Income and Employment
(a) Total Employment depends on Total output, which is equal to total income. So National Income = Total Employment.
(b) Total Value of employment depends on Effective Demand.
(c) Effective Demand is composed of Aggregate Demand Function (ADF) and Aggregate Supply Function (ASF). The Effective demand at the equilibrium price where ADF = ASF.
(d)
Monday, 18 July 2011
Keynes General Theory of Income and Employment
Posted on 05:04 by Unknown
Subscribe to:
Post Comments (Atom)
0 comments:
Post a Comment