Keynesian theory of consumption function, Managerial Economics

THE KEYNESIAN THEORY OF CONSUMPTION FUNCTION

The theory was developed during the Great Depression which plagued Europe and America.  During this time, there was excess capacity and idle resources and no effective demand i.e. people were unemployed and had no purchasing power.  The determination of aggregate demand, then, was of crucial significance in Keynes analysis.

Posted Date: 11/28/2012 6:22:58 AM | Location : United States







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