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Mark Lorenzo

σε πρόσθεσε στο Financial Services
2023-03-16 20:30:06 -

The building blocks of Keynesian analysis
Key points Keynesian economics is based on two main ideas. First, aggregate demand is more likely than aggregate supply to be the primary cause of a short-run economic event like a recession. Second, wages and prices can be sticky, and so, in an economic downturn, unemployment can result. The coordination argument states that downward wage and price flexibility...

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Mark Lorenzo

σε πρόσθεσε στο Financial Services
2023-03-17 20:08:51 -

The Phillips curve in the Keynesian perspective
Key points A Phillips curve shows the tradeoff between unemployment and inflation in an economy. Keynesian macroeconomics argues that the solution to a recession is expansionary fiscal policy that shifts the aggregate demand curve to the right. The other side of Keynesian policy occurs when the economy is operating above potential GDP. In this situation, unemployment is...

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