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Keynesian approaches and IS-LM

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Consumption function basicsGeneralized linear consumption functionConsumption function with income dependent taxes
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Keynesian crossDetails on shifting aggregate planned expendituresKeynesian cross and the multiplierThe expenditure-output, or Keynesian cross, model
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Investment and real interest ratesConnecting the keynesian cross to the IS curveLoanable funds interpretation of IS curveLM part of the IS-LM modelGovernment spending and the IS-LM model
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Keynesian economicsRisks of Keynesian thinkingMacroeconomic perspectives on demand and supplyKeynes’ Law and Say’s Law in the AD/AS modelAggregate demand in Keynesian analysisThe building blocks of Keynesian analysisThe Phillips curve in the Keynesian perspectiveThe Keynesian perspective on market forces

About this unit

The global Great Depression of the late 1920s and 1930s rocked the entire discipline of economics. This lead to a fundamental rethinking of some of the fundamental assumptions made about markets and price adjustments up to that point. In this unit, we explore one of the intellectual developments from this era that reshaped how many economists think about national income determination.