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

Simultaneous equation methods of forecasting, The economic model forecastin...

The economic model forecasting involves estimating several simultaneous equations which are generally behavioural equation mathematical identities and market clearing equations. T

Policy implications - structure of national income , Policy Implications: ...

Policy Implications: The expansion of the services sector has wider implications for population, employment, and trade prospects of the economy, some of which are as follows:

Clean auto Inc, CleanAuto Inc. has four workers: Julie, Ian, Devon, and Tho...

CleanAuto Inc. has four workers: Julie, Ian, Devon, and Thomas. CleanAuto Inc. provides two services: interior vacuuming and exterior wash. Julie can perform each of these tasks in

Cropping pattern over time, Cropping Pattern Over Time: The dominance ...

Cropping Pattern Over Time: The dominance of food crops and among food crops that of rice and wheat only states the existing cropping patterns. It is important to study the tr

Oncepts of supply, concepts of suply

concepts of suply

Oppurtunity cost, 1. Assume that Malaysia can produce cencaluk at 25 bottle...

1. Assume that Malaysia can produce cencaluk at 25 bottles per worker and belacan at RM5 per worker. Assume that Indonesia can produce 10 bottles of cencaluk per worker and 20 pack

Macro economics, At what point is the Fed likely to raise interest rates fo...

At what point is the Fed likely to raise interest rates for the first time? How large are the first couple of hikes likely to be? (hints: conditional on unemployment or gdp growth

Production cost, assingnment on production cost

assingnment on production cost

Calculate the traditional net present value, Fiera Corporation is evaluatin...

Fiera Corporation is evaluating a new project that costs $45,000. The project will be financed using 40% debt and 60% equity, thus maintaining the firm's current debt-to-equity ra

CIE October November 2007 paper one, i''m">http://papers.xtremepapers.com...

i''m">http://papers.xtremepapers.com/CIE/Cambridge%20International%20A%20and%20AS%20Level/Economics%20%289708%29/9708_w07_qp_1.pdf i''m finding question 13 difficult to comprehen

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages