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Aggregate Effective Demand

In: Understanding Keynes’ General Theory

Author

Listed:
  • Brendan Sheehan

    (Leeds Metropolitan University)

Abstract

In the General Theory Keynes finally breaks with Say’s law.1 In its place he outlines a theory of what determines aggregate income, output and employment in which the central unifying concept of aggregate effective demand plays the leading role. Effective demand is the single most important idea in Keynes’ General Theory model. It is essential that the reader has a proper appreciation of this category of analysis.2

Suggested Citation

  • Brendan Sheehan, 2009. "Aggregate Effective Demand," Palgrave Macmillan Books, in: Understanding Keynes’ General Theory, chapter 3, pages 36-65, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-23285-3_3
    DOI: 10.1057/9780230232853_3
    as

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