How Keynes Theory explain great depression by using expenditure model ?
please explain briefly as if you teach a student ;)
- OiyLv 610 months ago
To confirm that the business cycle is real, Keynes has proved that classical explanation is wrong in at least three things. First, price and wage cannot adjust freely to the new equilibrium in the short run. Second, it is not about the quantity of money, but the demand for money as well. Third, supply cannot always create its own demand.