I am interested in history and philosophy but mostly my major concentrates on business. I will try to upload my papers soon. Here is some paragraphs I pastes from my homework for the case Keynes in the macroeconomic course:
. Evaluate the Keynesian diagnosis. What were Keynes’ assumption about the functioning of private markets, the nature of unemployment, the role of savings and the effectiveness of governemnt.
In the case, Keynesian diagnosis is widely approach to the economic problem in Great Britain at that time. His diagnosis is coverred on explaining the functioning of private markets, the nature of unemployment, the role of savings, and the effectiveness of government.
The functioning of private markets is as a source that promote and generate the loan-expenditure to enhance employment. The loan-expenditure, or in other word, deficit spending can have the effect that can increase private incomes, and is transmited through private markets.
The nature of unemployment in the case of Keynesian is derived from lack of capital/loan expenditure to bring people in employment. To increase employment, Keynes suggested to increase loanf-expenditure by through multiplier that would cover and reach to consumption and also aid the goverment’s budget.
The role of savings here in this case is like in multiplier analysis, that would generate the capital expenditure, to remove unemployment from the government’s dole, and also decreasing expenditures. In addition, the recipients of the additional income, will pay more tax to the Exchequer.
The effectiveness of government here is concerned about goverment spending which lead to rising price problems. In other words, the effectiveness of government here is not to use supply-restriction to raise price except of demand-expansion. If the goverment use supply-restricition, it would affect negatively as reducing demand, destroying the income of retrenched producers.
2.What did Keynes mean when he said on page...