Topic 14 for a course in basic economics

TOPIC 14
The Keynesian Revolution

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The Keynesian revolution of the 1940s established the beginnings of modern macroeconomics. In this topic we attempt to set out the rudiments of the Keynesian system in such a way as to make understandable some of the subsequent developments in theory and also the reasons for the persistence of the macroeconomic policy conflicts which will be considered in the following topic.

Objectives:

To show how the development of modern macroeconomic theory was influenced by the real world experience of the 1930s and 1940s
Outline the essential features of the Keynesian understanding of how the equilibrium level of national income is determined and explore its policy implications for a free-market capitalistic economy