Principles of Economics

Philip Leatherwood, Lecturer

Kazakhstan Institute of Management, Economics, and Strategic Planning

6 February, 2001

Announcements

    1. Extra Tutorials scheduled for Tuesdays, 18.15, Hall # 9
    2. Deadline for presentation applications is this Friday, 9 February.

Lecture
  1. Classical determination of
    1. employment
    2. output
    3. growth
  1. The Great Depression and Keynesian Economics--

Empirical evidence contradicts the classical theory
    1. Agricultural prices lead to decreased demand
    2. bank problems
    3. stock market crash
    4. trade restrictions

III. The General Theory of Employment, Interest, and Money

    1. Break-down of the financial sector
    2. Investment is autonomous
    3. Output is demand-determined
    4. "In the long run we are all dead."
  1. The Income-Expenditures Model

 

For Next Time:

Be able to graph, solve, and explain the income-expenditures model, iuncluding the concepts of the expenditures and tax multipiers, and fiscal policy.
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