Unit 5: Models of Output Determination


What’s in This Chapter? The theories of John Maynard Keynes became increasingly popular as the problems of the Great Depression of the 1930s worsened. The economy was experiencing a significant downward spiral, and people...

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Section 1: Keynes versus the Classicists

Keynesian Economics This unit describes the Keynesian economic model. Keynes’s model was the most influential in economics in the twentieth century. It became widely accepted after the Great Depression, and was almost...

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Section 2: The Keynesian Model

Keynes’s General Theory John Maynard Keynes wrote  A Treatise on Money (1930) and his most famous work, The General Theory of Employment, Interest and Money (1936), around the time of the Great Depression. During the Great...

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Section 6: Aggregate Demand and Aggregate Supply

The Aggregate Demand Curve In Unit 2, we learned that a demand curve illustrates the relationship between quantity demanded and the price of one product. In this unit, we discuss Aggregate demand. Aggregate demand represents the...

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Test Your Knowledge!

  Time limit: 0 Quiz-summary 0 of 10 questions completed Questions: 1 2 3 4 5 6 7 8 9 10 Information This is a ten question multiple-choice quiz covering the material in this Unit. I hope you do well! You have already...

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