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WORKS ONLINE:
Wandering the Galleries of Walla Walla
Bipolar Disorder and Heredity
ECT
SMALL SAMPLE ON kEYNESIAN tHEORY:
Output is made up of consumer goods and investment goods. The levels of
consumption and investment directly affect the level of output. Any fluctuation in the
level of effective demand directly, by affecting output levels, affects employment, with a
fixed money wage. It must be remembered that the money generated by production is
subject to three leakages: taxes, savings, and the purchase of imported goods. The
leaked money might get spent in the home market or it might not, adding to the
volatility of the situation. There is no guarantee that the government will spend all of
the money they take in through taxes, or that the money they do spend will be spent at
home. Saved money might be spent on business investment or it might not. And,
foreign nations might spend the money they accrue on imports or they might spend it
at home or save it. If the leakages are greater than the injections into the economy
aggregate demand drops, affecting production and incomes, if the injections are
larger than the leakages spending increase, but so do taxes, savings and imports, if
leakages and injections are equal, then growth stops and the economy stabilises.
