Get premium membership and access questions with answers, video lessons as well as revision papers.
Effective demand: that is; unemployment is caused by deficiency in effective demand so the solution is to raise consumption
Propensity to consume: that is when the marginal propensity to consume is high, output and employment will increase
Propensity to save: according to Keynes, low propensity is good for the economy and employment as it allows for extra cash for consumption spending
Marginal efficiency of capital: the marginal efficiency of capital or how efficient capital is used enhances investments and output
Rate of interest: it is critical in determining investments where high interest rates discourage investments and vice versa as high interest rates make capital expensive.
The multiplier: Keynes argued that the rate of growth, employment and income will be determined by his multiplier.
Dana05 answered the question on July 3, 2019 at 11:36
- State the assumptions of the Keynesian theory of economic growth(Solved)
State the assumptions of the Keynesian theory of economic growth
Date posted: July 3, 2019. Answers (1)
- Discuss the Keynesian theory of economic growth (Solved)
Discuss the Keynesian theory of economic growth
Date posted: July 3, 2019. Answers (1)
- Discuss Sen’s capability welfare theory of economic development (Solved)
Discuss Sen’s capability welfare theory of economic development
Date posted: July 3, 2019. Answers (1)
- State and discuss the limitations of Rostow’s five stages of economic development (Solved)
State and discuss the limitations of Rostow’s five stages of economic development
Date posted: July 3, 2019. Answers (1)
- Discuss the characteristics of the fifth stage of development according to Rostow’s five stages of economic development (Solved)
Discuss the characteristics of the fifth stage of development according to Rostow’s five stages of economic development
Date posted: July 3, 2019. Answers (1)
- Discuss the characteristics of the fourth stage of development according to Rostow’s five stages of economic development (Solved)
Discuss the characteristics of the fourth stage of development according to Rostow’s five stages of economic development
Date posted: July 3, 2019. Answers (1)
- Discuss the characteristics of the third stage of development according to Rostow’s five stages of economic development (Solved)
Discuss the characteristics of the third stage of development according to Rostow’s five stages of economic development
Date posted: July 3, 2019. Answers (1)
- Discuss the characteristics of the second stage of development according to Rostow’s five stages of economic development (Solved)
Discuss the characteristics of the second stage of development according to Rostow’s five stages of economic development
Date posted: July 3, 2019. Answers (1)
- Discuss the characteristics of the first stage of development according to Rostow’s five stages of economic development (Solved)
Discuss the characteristics of the first stage of development according to Rostow’s five stages of economic development
Date posted: July 3, 2019. Answers (1)
- What are the promises of a socialist?(Solved)
What are the promises of a socialist?
Date posted: July 3, 2019. Answers (1)
- Describe socialism as a theory of economic growth (Solved)
Describe socialism as a theory of economic growth
Date posted: July 3, 2019. Answers (1)
- Describe capitalism as a theory of economic growth (Solved)
Describe capitalism as a theory of economic growth
Date posted: July 3, 2019. Answers (1)
- Highlight the Marxists criticisms of capitalism (Solved)
Highlight the Marxists criticisms of capitalism
Date posted: July 3, 2019. Answers (1)
- Discuss the Marxism theory of economic development (Solved)
Discuss the Marxism theory of economic development
Date posted: July 3, 2019. Answers (1)
- Discuss the contribution of John Stuart Mill to the classical theory of economic growth (Solved)
Discuss the contribution of John Stuart Mill to the classical theory of economic growth
Date posted: July 3, 2019. Answers (1)
- Discuss the contribution of Thomas Robert Matthews to the classical theory of economic growth (Solved)
Discuss the contribution of Thomas Robert Matthews to the classical theory of economic growth
Date posted: July 3, 2019. Answers (1)
- Discuss the contribution of Jean Baptiste Say to the classical theory of economic growth (Solved)
Discuss the contribution of Jean Baptiste Say to the classical theory of economic growth
Date posted: July 3, 2019. Answers (1)
- Discuss the contribution of David Ricardo to the classical theory of economic growth (Solved)
Discuss the contribution of David Ricardo to the classical theory of economic growth
Date posted: July 3, 2019. Answers (1)
- Discuss the contribution of Adam smith to the classical theory of economic growth (Solved)
Discuss the contribution of Adam smith to the classical theory of economic growth
Date posted: July 3, 2019. Answers (1)
- What is a theory?(Solved)
What is a theory?
Date posted: July 3, 2019. Answers (1)