According to the lectures, which of the following ideas are representative of (neo)classical (orthodox) theory, which are representative of (post)Keynesian (heterodox) theory, and which are shared by both theories? 1. Capitalist economies tend to full employment, at least in the long run = 2. Output, income, and employment fall when money saved exceeds intended investment, until savings equals investment = 3. Demand, particularly intended investment, drives supply = 4. Capitalist economies will normally fail to reach full employment due to insufficient aggregate demand = 5. Interest rates fall when money saved exceeds the demand for those funds for investment, until savings equals investment =
According to the lectures, which of the following ideas are representative of (neo)classical (orthodox) theory, which are representative of (post)Keynesian (heterodox) theory, and which are shared by both theories?
1. Capitalist economies tend to full employment, at least in the long run =
2. Output, income, and employment fall when money saved exceeds intended investment, until savings equals investment =
3. Demand, particularly intended investment, drives supply =
4. Capitalist economies will normally fail to reach full employment due to insufficient aggregate demand =
5. Interest rates fall when money saved exceeds the demand for those funds for investment, until savings equals investment =
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
