NTA CUET- UG 2024 Economics|Fully solved 2023 paper | Chapterwise summed pointers for revision | Digital Question Bank & Mock Tests

CHAPTER 4

Determination of Income and Employment

 

“Stripped down, the conclusions of The General Theory might be expressed as four bullet points:

• Economies can and often do suffer from an overall lack of demand, which leads to involuntary unemployment
• The economy’s automatic tendency to correct shortfalls in demand, if it exists at all, operates slowly and painfully
• Government policies to increase demand, by contrast, can reduce unemployment quickly
• Sometimes increasing the money supply won’t be enough to persuade the private sector to spend more, and government spending must step into the breach.

To a modern practitioner of economic policy, none of this – except, possibly, the last point – sounds startling or even especially controversial. ...