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Aggregate Demand

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What did Keynes say we should do to Aggregate Demand during times of recession or depression?
How should it be done according to Keynes?
Draw the supply and demand curves to illustrate.

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The expert examines aggregate demand for Keynes

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Keynes believed that aggregate demand determined real GDP. From the events of the 1930s, it was apparent to him that output and employment do not necessary move toward full employment levels. A sudden decline in demand can ripple through the economy, a companies lay off workers, which further reduces ...

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