What you’ll learn to do: understand the tenets of Keynesian Economics and apply the tenets through the aggregate demand and supply model

In this section, you will learn about the basics behind Keynesian Economics and analyze the AD/AS model through the lens of the Keynesian perspective.

The specific things you’ll learn in this section include:

• Identify the Keynesian portion of the AS curve and explain the logic for it
• Use the Income-Expenditure model to explain periods of recession and expansion
• Find the GDP Gap (negative or positive)

LEARNING ACTIVITIES

The learning activities for this section include:

• Reading: Introduction to the Keynesian Perspective
• Reading: Keynes’ Law and Demand
• Reading: Aggregate Demand in Keynesian Analysis
• Reading: The Building Blocks of Keynesian Analysis
• Self Check: The Keynesian Perspective
• Reading:  The GDP Gap
• Self Check: The GDP Gap
• Reading:  The Phillips Curve
• Self Check: The Keynesian Portion of the AS Curve
• Reading: The Keynesian Perspective on Market Forces

Take time to review and reflect on each of these activities in order to improve your performance on the assessment for this section.