The central pillar of the Keynesian system is that spending drives the economy, so savings on a large scale will push the ...

We estimate the resulting model using postwar U.S. data, while treating the unemployment rate as an additional observable variable. Our approach overcomes the lack of identification of wage markup and ...

Assume that an economy is in a state of Keynesian unemployment. Since production is demand-determined there are bootstraps (multiple) equilibria. Then, the more optimist agents are about the future ...

Keynes argued that inadequate overall demand could lead to prolonged periods of high unemployment. An economy’s output of goods and services is the sum of four components: consumption, investment, ...

Keynes suggested that a government should take action to increase spending on goods and services in response to low economic activity and increased unemployment. Prior to World War II, the U.S ...

Keynesian economists believe a free market can produce periods of inadequate demand that can lead to extended periods of high unemployment. During a recession, consumer confidence drops and ...

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Keynesian economists believe a free market can produce periods of inadequate demand that can lead to extended periods of high unemployment. During a recession, consumer confidence drops and ...