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Hi, could you help draw simply concept map on Keynesian and Post-Keynesian Economics. There are three principal tenets in the Keynesian description of how the

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Hi, could you help draw simply concept map on Keynesian and Post-Keynesian Economics.

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There are three principal tenets in the Keynesian description of how the economy works: 1. Aggregate demand is influenced by many economic decisionspublic and private Private sector decisions can sometimes lead to adverse macroeconomic outcomes, such as reduction in consumer spending during a recession. These market failures sometimes call for active policies by the government, such as a fiscal stimulus package. Therefore, Keynesian economics supports a mixed economy guided mainly by the private sector but partly operated by the government. 2. Prices, and especially wages, respond slowly to changes in supply and demand This results in periodic shortages and surpluses, especially of labor. There are three principal tenets in the Keynesian description of how the economy works: 3. Changes in aggregate demand have their greatest short-run effect on real output and employment Keynesians believe that, because prices are somewhat rigid, fluctuations in any component of spendingconsumption, investment, or government expenditurescause output to change. If government spending increases, for example, and all other spending components remain constant, then output will increase. Keynesian models of economic activity also include a multiplier effect; that is, output changes by some multiple of the increase or decrease in spending that caused the change. If the fiscal multiplier is greater than one, then a one dollar increase in government spending would result in an increase in output greater than one dollar. RMIT Classification: Trusted What is Post-Keynesian Economics? . Post-Keynesian economics is a school of economic thought with its origins in The General Theory of John Maynard Keynes, with subsequent development influenced to a large degree by Michal Kalecki, Joan Robinson, Nicholas Kaldor, Sidney Weintraub, Paul Davidson, Piero Sraffa and Jan Kregel. . Historian Robert Skidelsky argues that the post-Keynesian school has remained closest to the spirit of Keynes' original work. . The theoretical foundation of post-Keynesian economics (PKE) is the principle of effective demand, that demand matters in the long as well as the short run, so that a competitive market economy has no natural or automatic tendency towards full employment. . PKE rejects the methodological individualism that underlies much of mainstream economics. Instead, PKE argues that fundamental uncertainty and social conflict require an analysis of human behaviour based on social conventions and heuristics embedded in specific institutional contexts

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