Unformatted text preview: the depression. As the aggregate demand increases the price level falls, influencing people to buy more at lower prices and an increase in the amount of goods and services demanded. This would ultimately result in a government budget deficit where the total government expenditures exceed the total government revenues. By shifting the aggregate demand, the equilibrium level of aggregate output and employment would rise. Keynesian economics ultimately brought the nation out of the Great Depression. It encouraged full employment and price stability. Reference: “John Maynard Keynes” Retrieved October 21, 2007, from HISTORY OF ECONOMIC THOUGHT: http://cepa.newschool.edu/het/profiles/keynes.htm “A review of Keynesian theory” Retrieved October 21, 2007, from CAUSES OF THE GREAT DEPRESSION: http://www.huppi.com/kangaroo/Causes.htm...
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This note was uploaded on 01/11/2012 for the course ECONOMICS 1010 taught by Professor Aandan during the Spring '10 term at York University.
- Spring '10