MAJOR ISSUSES IN MACOECONOMICS
MAJOR ISSUSES IN MACOECONOMICS
INFLATION OR RISING GENERAL PRICE LEVEL :
Another macroeconomics issues is to explain the problem of inflation ,inflation has been a major problem faced by both the developed and developing countries in the last fifty years ,classified economists thought that it is the quantity of money in the economy that determines the general price level in the economy and ,according to them,rate of inflation depends on the growth of money supply in the economy ,keynes critisied the 'quantity theory of money'and showed that expansion in money supply did not always lead to inflation or rise in price level ,keynes who before the second world war explained that involuntary enemployment and depression were due to the deficiency of aggregate demadn ,during the war period when prices rose very high explained in a booklet'how to pay for war' that just as unemployment and depression were caused by the deficiency of aggregate demand ,inflation was due to the exvessive aggregate demand,thus ,keynes put forward that is now called demand -pull theory of inflation ,after keynes ,theory of inflation has been further developed and many theories of inflation depeding upon various cause have been put forward ,cost -push adn structuralist theories of inflation have been put forward to analyse the problem of inflation is an important issue of macroeconomics.
info educaiton macroeconomics
by santosh
INFLATION OR RISING GENERAL PRICE LEVEL :
Another macroeconomics issues is to explain the problem of inflation ,inflation has been a major problem faced by both the developed and developing countries in the last fifty years ,classified economists thought that it is the quantity of money in the economy that determines the general price level in the economy and ,according to them,rate of inflation depends on the growth of money supply in the economy ,keynes critisied the 'quantity theory of money'and showed that expansion in money supply did not always lead to inflation or rise in price level ,keynes who before the second world war explained that involuntary enemployment and depression were due to the deficiency of aggregate demadn ,during the war period when prices rose very high explained in a booklet'how to pay for war' that just as unemployment and depression were caused by the deficiency of aggregate demand ,inflation was due to the exvessive aggregate demand,thus ,keynes put forward that is now called demand -pull theory of inflation ,after keynes ,theory of inflation has been further developed and many theories of inflation depeding upon various cause have been put forward ,cost -push adn structuralist theories of inflation have been put forward to analyse the problem of inflation is an important issue of macroeconomics.
info educaiton macroeconomics
by santosh
LINK REFER.SANTOSH
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