One concept introduced in this work is a calculable ratio between income and investment termed the multiplier, and this work explains the concepts of prime cost and supplementary cost as functions of the sacrifice of value from producing a good, the user cost. Interest rates are theorized as rewards for the consumer parting with the concrete form of money, a phenomenon known as liquidity preference, and the author defines effective demand as the intersection of the aggregate supply function and the aggregate demand function. Famously advocating deficit spending in orde
One concept introduced in this work is a calculable ratio between income and investment termed the multiplier, and this work explains the concepts of prime cost and supplementary cost as functions of the sacrifice of value from producing a good, the user cost. Interest rates are theorized as rewards for the consumer parting with the concrete form of money, a phenomenon known as liquidity preference, and the author defines effective demand as the intersection of the aggregate supply function and the aggregate demand function. Famously advocating deficit spending in order to increase aggregate demand and relieve unemployment, for 10 points, name this seminal text in economics by John Maynard Keynes.
One concept introduced in this work is a calculable ratio between income and investment termed the multiplier, and this work explains the concepts of prime cost and supplementary cost as functions of the sacrifice of value from producing a good, the user cost.
The {General Theory} of Employment, Interest, and Money