What is ldquoeffective demandrdquo according to keynes how


1- What is “effective demand” according to keynes? How can there be a lack of effective demand?

2- How did keynes explain that aggregate production and aggregate spending might not be equal? What happens if aggregate production is greater than aggregate spending?

3- How do keynesians counter the neoclassical argument that, in recession, falling prices will restore demand for goods to the full employment equilibrium point?

 

4- How does keynes explain inflation?

Request for Solution File

Ask an Expert for Answer!!
Business Economics: What is ldquoeffective demandrdquo according to keynes how
Reference No:- TGS01348946

Expected delivery within 24 Hours