Chapter 10 Aggregate Demand I Building the IS-LM Model-曼昆宏观经济学,第七版-英幻灯片.pptVIP

CHAPTER 10 Aggregate Demand 1: Building the IS-LM Model;The Great Depression caused many economists to question the validity of classical economic theory (from Chapters 3-6). They believed they needed a new model to explain such a pervasive economic downturn and to suggest that government policies might ease some of the economic hardship that society was experiencing. In 1936, John Maynard Keynes wrote The General Theory of Employment, Interest, and Money. In it, he proposed a new way to analyze the economy, which he presented as an alternative to the classical theory. Keynes proposed that