The Keynesian formula is an economic theory developed by the British economist John Maynard Keynes. Keynes argued that the level of output and employment in the economy was determined by aggregate demand or effective demand. In a reversal of Say's Law, Keynes in essence argued that "man creates his own supply," up to the limit set by full employment. Adherents of the Austrian and Monetarist and schools of economic thought are critical of this theory.
Read more about Keynesian Formula: Composition of The Keynesian Formula, Consumption, Investment, Government Spending, Exports, Imports, GDP, Economic Consequences
Famous quotes containing the word formula:
“I feel like a white granular mass of amorphous crystalsmy formula appears to be isomeric with Spasmotoxin. My aurochloride precipitates into beautiful prismatic needles. My Platinochloride develops octohedron crystals,with a fine blue florescence. My physiological action is not indifferent. One millionth of a grain injected under the skin of a frog produced instantaneous death accompanied by an orange blossom odor.”
—Lafcadio Hearn (18501904)