Keynes' theory and expectations, Microeconomics

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.  

Posted Date: 11/19/2012 6:39:40 AM | Location : United States







Related Discussions:- Keynes' theory and expectations, Assignment Help, Ask Question on Keynes' theory and expectations, Get Answer, Expert's Help, Keynes' theory and expectations Discussions

Write discussion on Keynes' theory and expectations
Your posts are moderated
Related Questions

Determine the oldest ideas in economics One of the oldest ideas in economics is that increases in technology certainly run into natural resource scarcity and so lead to increas

The data used for this project are contained in the EViews-files. Before you start working, copy the files on a local drive and use the copied files only. You are expected to so

Let''s assume that a monopolist decides to maximize revenue, rather than profit. How does this operating objective change the size of the deadweight loss?

When is the price of a product demand determined? The price of a product is demand defined while the product is in fixed supply. This means that the price of the product is defin

The Value of Title Insurance While Buying a House *  A Scenario: - Price of house is $200,000 - 5% chance that seller does not own house *  Risk neutral buyer would pa

Assume that the market for lamb is perfectly competitive. Using an appropriate model (or models) illustrate and explain a. How a competitive market arrives at equilibrium

Weston Industrial Manufacturing Products ("WIMP") has the capability to produce a variety of industrial products, including a number of types of widgets. In the past, WIMP has manu

when the demand function is 2q-24+3p=0,find marginal revenue when q=3

1.  The marginal benefit (demand) curve for pollution for an industry is P=100-4*Q, where Q is emissions in tons.  The current emissions tax (price) for pollution is $40/ton.  Regu