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  • Keynes Theory

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    Keshav Kumar Thakur
    16 views8 pages
    This document discusses macroeconomic equilibrium and how the aggregate demand (AD) equals aggregate supply (AS) at equilibrium. It explains that: 1) Equilibrium occurs when AD equals AS, meaning the total amount consumers and firms want to buy is equal to the total amount producers are willing to supply. 2) The AD curve captures consumption (C) and investment (I) and the AS curve shows potential output at all price levels. 3) When AD is greater than AS, producers will increase output to meet demand, bringing the economy to equilibrium.

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    Keynes theory

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    This document discusses macroeconomic equilibrium and how the aggregate demand (AD) equals aggregate supply (AS) at equilibrium. It explains that: 1) Equilibrium occurs when AD equals AS, meaning the total amount consumers and firms want to buy is equal to the total amount producers are willing to supply. 2) The AD curve captures consumption (C) and investment (I) and the AS curve shows potential output at all price levels. 3) When AD is greater than AS, producers will increase output to meet demand, bringing the economy to equilibrium.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    16 views8 pages

    Keynes Theory

    Uploaded by

    Keshav Kumar Thakur
    This document discusses macroeconomic equilibrium and how the aggregate demand (AD) equals aggregate supply (AS) at equilibrium. It explains that: 1) Equilibrium occurs when AD equals AS, meaning the total amount consumers and firms want to buy is equal to the total amount producers are willing to supply. 2) The AD curve captures consumption (C) and investment (I) and the AS curve shows potential output at all price levels. 3) When AD is greater than AS, producers will increase output to meet demand, bringing the economy to equilibrium.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 8

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