Keynesian Economics Question

KEYNESIAN ECONOMICS. 1. What was the significance of the Great Depression of the 1930s? The go period of high unemployment and recessions of the 1930s was thought not to be possible by Neo-classical economists and that a self correcting and self draw rein economy would bring the labour market back into counterweight at full employment due to wage and get down flexibility. This did not happen. New thinking was required, enter Keynes! 2. What did Keynes argue in his book The Economic Consequences of the Peace? He argued that reparations forced on Germany by the Allies after WW1 were far too marked-up and would cripple the German economy to such an extent and would throw in the towel to socio-political problems in the future which would not be in the rollick of the Allies. He saw that the financial burden of reparations on Germany would not allow the development of a stable economy. Could WW2 have been averted if Keynes had been listened to at the Peace Conference at Versailles in 1918 where he potently put this argument? 3. What was Keynes fundamental criticism of Neo-Classical Economics? The Neo-Classicals incur for granted that full employment would naturally occur direct by market forces. In equilibrium the economy would of all time be at full employment.

Keynes argued that equilibrium was possible at less(prenominal) than full employment so that if unemployment occurred it would not always be automatically corrected. 4. Keynes work brought about a distinction amidst big and Micro Economics. Distinguish be tween the two. Macroecono! mics looked at the economy in terms of aggregates and examines the behaviour of the economy in terms of income and expenditure flows with limited references to prices. Microeconomics is concerned with the behaviour of individual prices and quantities and the pattern of imagery allocation. 5. Briefly outline Keynes critique of the major pillars of...If you want to bollix a full essay, order it on our website: OrderCustomPaper.com

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