IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-37106-4_3.html
   My bibliography  Save this book chapter

Keynesian Macroeconomic Theory

In: Macroeconomic Models and Controversies

Author

Listed:
  • Giuseppe Chirichiello

    (University ‘La Sapienza’)

Abstract

The underlying principle of the Keynesian theory of national income and employment is the effective demand principle, which is explained in an expenditure—income scheme where equality of aggregate demand and aggregate supply of goods is defined in terms of equality of aggregate expenditure and national income, both in real terms. A distinction between autonomous components and those depending on income makes it possible to conceive of situations where there is insufficient effective demand, and consequently, underemployment equilibria. The aggregate demand is assumed to be the sum only of consumption and investments and the demand for consumption is assumed to depend on real income. Investment is assumed to depend on variables other than real income (namely the interest rate).

Suggested Citation

  • Giuseppe Chirichiello, 1994. "Keynesian Macroeconomic Theory," Palgrave Macmillan Books, in: Macroeconomic Models and Controversies, chapter 2, pages 55-92, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-37106-4_3
    DOI: 10.1057/9780230371064_3
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-37106-4_3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.