Keynes' theory and expectations, Microeconomics


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
List and describe the determinants of the price elasticity of demand and of supply.

how to estimate a regression model that tests for higher ability individuals get a greater return from schooling

a firm has fixed costs of $60 and variable costs as indicated at the bottom of this page. complete the table and check your calculations

A firm in a perfectly competitive product market takes the price of the product as given. Similarly, a firm in a perfectly competitive factor market takes the price of the factor

Suppose Jean Splicer, an investor, buys $300,000 of shares of stock in a diversified bundle of Bio-tech firms and exactly one year later sells those shares for $315,000. Assume the

#quUse a graphical illustration to describe briefly what the influence of each of the following would be on the market supply of labor:(a) an increase in immigration (b) more women

how can a price ceiling make consumers better-off? under what conditions might it make them worse off?

Question 1: i) Derive and explain Harberger's (1954) welfare loss estimates of monopolizing a perfectly competitive firm. ii) What are the roles of advertising? Can it lead

NETWORK EXTERNALITIES Till this point we have assumed that people's demands for good are independent of each other. Actually, a person's demand can be affected by the number

Criteria of a Good Forecasting Method: 1. Simplicity : and Ease of Comprehension: Management must be able to understand and have confidence in the techniques used compli