Describe the keynes motivation, Macroeconomics

Q. Describe the Keynes motivation?

Keynes' motivation: In good times, when Y is high (above its trend), national income is high (above it trend). Consumers will take this opportunity to buy things they otherwise can't afford. In bad times, conversely consumers simply can't buy things they would have bought if income was higher.

Related Discussions:- Describe the keynes motivation

neumann-morgenstern utility index- risk premium, Question 1 Consider an...

Question 1 Consider an investor who has the von Neumann-Morgenstern utility index u(x ) = 3 + 4√ x An investment provides income according to two possible future scenari

Production function stuff, 1. Given the following production function: ...

1. Given the following production function: Y = K1/4 L3/4 Find the following: a. Per worker production function. b. Steady-state capital-labor ratio as a function of d and

First investment yields a gain, An investor has a choice of 2 investment op...

An investor has a choice of 2 investment opportunities. The first investment yields a gain of $2800 with probability of 0.37, a gain of $1100 with probability of 0.27, and otherwis

How commercial banks create money, How commercial banks "create money" ...

How commercial banks "create money" Commercial banks obviously cannot influence the amount of currency in the economy or the monetary base, since they are not allowed to print

Financial crisis in terms of adverse, Briefly explain the dynamics of the 2...

Briefly explain the dynamics of the 2007 financial crisis in terms of adverse selection and moral hazard.

Absolute advantage and comparative advantage, Differences between absolute ...

Differences between absolute advantage and comparative advantage? Ans) Absolute benefit and comparative benefit are two basic concepts to international trade. Under

Relationship with 8 variants of national product aggregates, RELATIONSHIP W...

RELATIONSHIP WITH 8 VARIANTS OF NATIONAL PRODUCT AGGREGATES We have shown the distinction between national product at market prices and national product at factor cost, based

Define nominal wages, Q. Define Nominal wages? The nominal wage is wage...

Q. Define Nominal wages? The nominal wage is wage per unit of time in the currency used in the country- what we usually just call wage. When we mention wage in macroeconomics w

Fiscal policy in the School of rational expectations, I want a Fiscal polic...

I want a Fiscal policy in the School of rational expectations.

Aggregate demand in the cross model, Aggregate demand in the cross model ...

Aggregate demand in the cross model Because C and Im depends positively on Y while G, I and X are exogenous, aggregate demand Y D will depend positively on Y: Y D (Y) = C(

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages