Chapter1_Classical Keynesian Debate

Chapter1_Classical Keynesian Debate - 11 Topic 1:...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Topic 1: Introduction Macroeconomics o Definition It’s the study of the structure and performance of national  economies and of the policies that governments use to try  to affect economic performance. Aggregation:  combining many markets into one small  market Amount of output produced per unit of labour input is called  average labour productivity. Equilibrium  is a situation in which the quantities  demanded and supplied are equal. 1-1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Schools of Thought: o Classical economists Started by the famous Scottish economist Adam Smith. He  proposed the “invisible hand” in his book, The Wealth of  Nations. This invisible hand will lead people to maximize the  general welfare of everyone in the economy, though they are  pursuing their own self-interest. Wage and prices in particular  adjust almost immediately to market quantity of supply to  maintain equilibrium. Classical economists often said 
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 7

Chapter1_Classical Keynesian Debate - 11 Topic 1:...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online