Arbeitspapier
Macroeconomics versus 'Common Sense'
The very basis of macroeconomics is the circular flow of expenditures and incomes. From this follows the conclusion that it is demand which determines supply and not vice versa. The most paradoxical result of this approach is the hypothesis that investment finances itself by quantity adjustment, if capacity and labour are not fully employed (a typical feature of a capitalist economy) or by price adjustment, i.e. by demand-pull inflation (if capacity and labour force are underemployed).
- Language
-
Englisch
- Bibliographic citation
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Series: wiiw Working Paper ; No. 33
- Classification
-
Wirtschaft
- Subject
-
consumer goods surplus
income and capacity effect of investment
quantity versus price adjustment
two-sector model
- Event
-
Geistige Schöpfung
- (who)
-
Laski, Kazimierz
- Event
-
Veröffentlichung
- (who)
-
The Vienna Institute for International Economic Studies (wiiw)
- (where)
-
Vienna
- (when)
-
2004
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Laski, Kazimierz
- The Vienna Institute for International Economic Studies (wiiw)
Time of origin
- 2004
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