Chapter 22

The Simple Keynesian Model of Aggregate Demand: Equilibrium

This chapter begins the construction of a theory of unemployment in the tradition of John Maynard Keynes. In this chapter, in particular, we consider how the interaction of income and expenditure might lead to something like an "equilibrium" with unemployment.

Begin the chapter

Overheads

Test your understanding -- Multiple-choice questions.

You Need To Know

• Chapter 1. Introduction
• Chapter 2. The Neoclassical Perspective
• Chapter 17. Measuring the National Economy

Contents

1. Introduction to Macroeconomic Models
2. The New Economics of the 1930's
3. An Income-Expenditure Approach
4. The Consumption Function
5. The Simple Model
6. Equilibrium
7. The Multiplier
8. Inventory and Disequilibrum
9. Employment
10. Coordination Failure
11. How Does This Model Fit In?
12. Chapter Summary and Conclusion

Next Chapter: Business Fluctuations in the Simple Keynesian Model

To the list of chapters