Economy driven by aggregate demand from "summary" of The General Theory of Employment, Interest, and Money by John Maynard Keynes
The central idea presented in 'The General Theory of Employment, Interest, and Money' is that the level of economic activity in a society is primarily determined by the level of aggregate demand. In other words, the total amount of spending in an economy drives the overall level of production and employment. Keynes argues that fluctuations in aggregate demand are the main cause of economic fluctuations. When aggregate demand is high, businesses are motivated to produce more goods and services, leading to increased employment and economic growth. Conversely, when aggregate demand is low, businesses cut back on production, leading to unemployment and economic stagnation. According to Keynes, the economy can sometimes get stuck in a situation where aggregate demand is insufficient to fully utilize the economy's productive capacity. This leads to a sit...
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