Keynes' theory and expectations, Microeconomics

Assignment Help:

KEYNES' THEORY AND EXPECTATIONS:

Expectations played a major role in Keynes' theory of the determination of aggregate output and employment in market economies in the short run. Expectations about future yields on investment projects underlie 'the marginal efficiency of capital' schedule. However, the volatile nature of these expectations plays a major role in explaining why investment expenditure and therefore output and employment in market economies are subject to fluctuations.

Related Discussions:- Keynes' theory and expectations

What are the properties of the profit function, What are the properties of ...

What are the properties of the profit function? Properties of the Profit Function: The properties specified below follow solely by the assumption of profit maximization. No

Define the post-communism policy, Policy: Post-Communism Demolition of ...

Policy: Post-Communism Demolition of the Berlin Wall and take-down of the Iron Curtain hasn't significantly improved the situation in what are optimistically and euphemisticall

Using the Keynesian income-expenditure model analyse the imp, any ideas?

any ideas?

Microeconomics, Define the concept of cross elasticity of demand

Define the concept of cross elasticity of demand

Demands for the two market are P1=15-, demand for two market are P1=15-Q1&P...

demand for two market are P1=15-Q1&P2=25-Q2.the monopoly TC is C=5+3(Q1+Q2).What are ,output,profit&MR if the monopolist can price disc? riminate

Production, Ask questA rmuses 4 inputs to produce 1 output. The production...

Ask questA rmuses 4 inputs to produce 1 output. The production function is f (x 1 ; x 2 ; x 3 ; x 4) =minfx 1 ; x 2 g + minfx 3 ; x 4 g.ion #Minimum 100 words accepted#

Sources of external economies of scale, Sources of external economies of sc...

Sources of external economies of scale: Economies of Skilled Labour: This involves upgrading the skills of labour through the provision of education and training faci

Assignment, is south africa''s economic system now more allocative efficien...

is south africa''s economic system now more allocative efficient

Contribution of foreign trade to economic development, Contribution of Fore...

Contribution of Foreign Trade to Economic Development: Foreign trade contributes to economic development in a number of ways. • It provides flow of technology which al

SOCIAL WELFARE FUNCTIONS, VIVIDLY EXPLAIN WHAT THE RAWLSIAN SOCIAL WELFARE ...

VIVIDLY EXPLAIN WHAT THE RAWLSIAN SOCIAL WELFARE ENTAILS

Write Your Message!

Name

Email id

Message

Verfication Code

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages