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The Keynesian Perspective

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Introduction to the Keynesian Perspective

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Aggregate Demand in Keynesian Analysis

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3

What Determines Consumption Expenditure?

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4

What Determines Investment Expenditure?

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5

What Determines Government Spending?

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6

What Determines Net Exports?

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7

Key Concepts and Summary

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8

The Building Blocks of Keynesian Analysis

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Wage and Price Stickiness

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The Two Keynesian Assumptions in the AD/AS Model

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11

The Expenditure Multiplier

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12

Key Concepts and Summary

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The Phillips Curve

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The Discovery of the Phillips Curve

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15

The Instability of the Phillips Curve

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Keynesian Policy For Fighting Unemployment and Inflation

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17

Key Concepts and Summary

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18

The Keynesian Perspective On Market Forces

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The Axes of the Expenditure-Output Diagram

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Building the Aggregate Expenditure Schedule

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Equilibrium in the Keynesian Cross Model

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The Multiplier Effect

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23

Key Concepts and Summary

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