Key Ideas

1. The General Theory is a critique of classical economics, particularly the idea that markets will naturally self-regulate to full employment.

2. Keynes argues that unemployment can persist even when wages and prices are flexible.

3. Keynes introduces the concept of aggregate demand, which is the total level of spending in the economy.

4. According to Keynes, changes in aggregate demand, particularly in investment, are the primary drivers of economic fluctuations.

5. Keynes challenges the classical view that saving leads to investment, arguing instead that investment drives saving.

6. Ke....
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Quiz