Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/170663
Authors: 
Hartwig, Jochen
Year of Publication: 
2017
Series/Report no.: 
Chemnitz Economic Papers 003
Abstract: 
Keynes introduces the term 'effective demand' in chapter 3 of the General Theory as designating the point of intersection of two functions: the 'aggregate demand function' (D) and the 'aggregate supply function' (Z). For the first time in the literature, I here specify exact functional forms for the D and Z functions and run numerical simulations which allow to study the comparative statics of the model in the face of various 'shocks'. The demonstration of how the D/Z model actually works will hopefully prove useful for future students of the economics of Keynes.
Subjects: 
Keynes
effective demand
D/Z model
JEL: 
B31
E12
Document Type: 
Working Paper

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