03.04.2009 CHAPTER 9 BUILDING THE AGREEGATE EXPENDITURES MODEL (Keynesian Model-Toplam Harcamalar Modeli) -Every economy has capacity to produce. (Full employment level or full capacity) -Does any economy always produce at full capacity? (Not) -What determines the level of output or GDP actual produced and what causes its increase or decrease? Historical Backdrop 19. Century: Classic economists: Adam Smith, David Ricardo, Thomas Malthus, Jean Baptiste Say 20. Century: Neo-classic Economists (up until to 1936): Marshall, Fisher 1936: John Meynard Keynes and some following economists. Say’s Law and the Classical Economists -Jean Baptiste Say (A French economists) said that “
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