{"id":424,"date":"2015-05-05T03:31:19","date_gmt":"2015-05-05T03:31:19","guid":{"rendered":"https:\/\/courses.candelalearning.com\/masterymacro1xngcxmaster\/?post_type=chapter&#038;p=424"},"modified":"2019-01-14T20:27:04","modified_gmt":"2019-01-14T20:27:04","slug":"macroeconomic-perspectives-on-demand-and-supply","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/oldwestbury-wm-macroeconomics\/chapter\/macroeconomic-perspectives-on-demand-and-supply\/","title":{"raw":"Say's Law versus Keynes' Law","rendered":"Say&#8217;s Law versus Keynes&#8217; Law"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Objectives<\/h3>\r\n<ul>\r\n \t<li>Differentiate between the ways that Say\u2019s Law and Keynes\u2019 Law explain economic behavior<\/li>\r\n<\/ul>\r\n<\/div>\r\nMacroeconomists over the last two centuries have often divided into two groups: those who argue that supply is the most important determinant of the size of the macroeconomy while demand just tags along, and those who argue that demand is the most important factor in the size of the macroeconomy while supply just tags along.\r\n<h2>Say\u2019s Law and the Macroeconomics of Supply<\/h2>\r\n[caption id=\"attachment_7862\" align=\"alignright\" width=\"362\"]<img class=\"wp-image-7862\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2043\/2015\/05\/15133349\/Grandi_fish_processing_conveyor_belt1_2011.jpg\" alt=\"Workers in a fish plant workers wear protective clothing and stand at stations performing various tasks.\" width=\"362\" height=\"240\" \/> <strong>Figure 1<\/strong>. Say's law emphasizes the importance of production and supply.[\/caption]\r\n\r\nThose economists who emphasize the role of supply in the macroeconomy often refer to Say's law: supply creates its own demand. As a matter of historical accuracy, it seems clear that Say never actually wrote down this law and that it oversimplifies his beliefs, but the law lives on as useful shorthand for summarizing a point of view.\r\n\r\nThe reasoning behind Say's law is that each time output is produced and sold, the revenues represent an equivalent amount of income generated. This income allows the owners to purchase the amount of output that was produced. While widget workers may not want to spend their entire paycheck on widgets, they will want to buy <em>something<\/em>, if not what they produced then something some other workers produced. In the aggregate, supply creates its own demand, or more generally, aggregate supply drives the economy while aggregate demand responds passively.\r\n<div class=\"textbox tryit\">\r\n<h3>Try It<\/h3>\r\nhttps:\/\/assessments.lumenlearning.com\/assessments\/7557\r\n\r\n<\/div>\r\n<h2 id=\"m48740-ch24mod01_02\">Keynes\u2019 Law and the Macroeconomics of Demand<\/h2>\r\nThe alternative to Say\u2019s law, with its emphasis on supply, can be named <strong>Keynes' Law<\/strong><i>:\u00a0<\/i>\u201cDemand creates its own supply.\u201d As a matter of historical accuracy, just as Jean-Baptiste Say never wrote down anything as simpleminded as Say\u2019s law, John Maynard Keynes never\u00a0wrote down Keynes\u2019 law, but the law is a useful simplification that conveys a certain point of view.\r\n\r\n[caption id=\"attachment_7864\" align=\"alignleft\" width=\"485\"]<img class=\"wp-image-7864 \" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2043\/2015\/05\/15134400\/8211477590_d76ef40d1d_o.jpg\" alt=\"People shopping in a crowed Macy's department store.\" width=\"485\" height=\"323\" \/> <strong>Figure 2<\/strong>. Keynes' Law emphasizes the role of demand.[\/caption]\r\n\r\nWhen Keynes wrote his great work <em>The General Theory of Employment, Interest, and Money<\/em> during the <em class=\"glossterm no-emphasis\">Great Depression<\/em>\u00a0the 1930s, he pointed out that during the Depression, the capacity of the economy to supply goods and services had not changed much. U.S. unemployment rates soared higher than 20% from 1933 to 1935, but the number of possible workers had not increased or decreased much. Factories were closed and shuttered, but machinery and equipment had not disappeared. Technologies that had been invented in the 1920s were not un-invented and forgotten in the 1930s. Thus, Keynes argued that the Great Depression\u2014and many ordinary recessions as well\u2014were not caused by a drop in the ability of the economy to supply goods as measured by labor, physical capital, or technology. He argued the economy often produced less than its full potential, not because it was technically impossible to produce more with the existing workers and machines, but because a lack of demand in the economy as a whole led to inadequate incentives for firms to produce. In such cases, he argued, the level of GDP in the economy was not primarily determined by the potential of what the economy could supply, but rather by the amount of total demand.\r\n\r\nKeynes\u2019 law seems to apply fairly well in the short run of a few months to a few years, when many firms experience either a drop in demand for their output during a recession or so much demand that they have trouble producing enough during an economic boom. However, demand cannot tell the whole macroeconomic story, either. After all, if demand was all that mattered at the macroeconomic level, then the government could make the economy as large as it wanted just by pumping up total demand through a large increase in the government spending component or by legislating large tax cuts to push up the consumption component. Economies do, however, face genuine limits to how much they can produce, limits determined by the quantity of labor, physical capital, technology, and the institutional and market structures that bring these factors of production together. These constraints on what an economy can supply at the macroeconomic level do not disappear just because of an increase in demand.\r\n<div class=\"textbox tryit\">\r\n<h3>Try It<\/h3>\r\nhttps:\/\/assessments.lumenlearning.com\/assessments\/7558\r\n\r\n<\/div>\r\n<h2 id=\"m48740-ch24mod01_03\">Combining Supply and Demand in Macroeconomics<\/h2>\r\nTwo insights emerge from this overview of Say\u2019s law with its emphasis on macroeconomic supply and Keynes\u2019 law with its emphasis on macroeconomic demand. The first conclusion, which is not exactly a hot news flash, is that an economic approach focused only on the supply side or only on the demand side can be only a partial success. Both supply and demand need to be taken into account. The second conclusion is that since Keynes\u2019 law applies more accurately in the short run and Say\u2019s law applies more accurately in the long run, the tradeoffs and connections between the three goals of macroeconomics may be different in the short run and the long run.\r\n\r\nTable 1 summarizes the two macroeconomic perspectives.\r\n<table id=\"ch24mod02_tab03\" summary=\"The table shows the key differences between Neoclassical Economics and Keynesian Economics. Column 1 lists a Summary of key economic considerations. Column 2 lists the stance of Neoclassical Economics. Column 3 lists the stance of Keynesian Economics. Focus: Long term or short term; Long-term (Neoclassical Economics); Short-term (Keynesian Economics). Prices and wages: sticky or flexible?; Flexible (Neoclassical Economics); Sticky (Keynesian Economics). Economic output: Primarily determined by aggregate demand or aggregate supply?; Aggregate supply (Neoclassical Economics); Aggregate demand (Keynesian Economics). Aggregate supply: vertical or upward-sloping?; Vertical (Neoclassical Economics); Upward-sloping (Keynesian Economics). Phillips curve vertical or downward-sloping; Vertical (Neoclassical Economics); Downward sloping (Keynesian Economics). Is aggregate demand a useful tool for controlling inflation?; Yes (Neoclassical Economics); Yes (Keynesian Economics). What should be the primary area of policy emphasis for reducing unemployment?; Reform labor market institutions to reduce natural rate of unemployment (Neoclassical Economics); Increase aggregate demand to eliminate cyclical unemployment (Keynesian Economics). Is aggregate demand a useful tool for ending recession?; At best, only in the short-run temporary sense, but may just increase inflation instead (Neoclassical Economics); Yes (Keynesian Economics).\">\r\n<thead>\r\n<tr>\r\n<th colspan=\"3\" scope=\"col\">Table 1. Comparing Neoclassical and Keynesian Economics<\/th>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"col\">Summary<\/th>\r\n<th scope=\"col\">Neoclassical Economics<\/th>\r\n<th scope=\"col\">Keynesian Economics<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>Focus: long-term or short term<\/td>\r\n<td>Long-term<\/td>\r\n<td>Short-term<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Prices and wages: sticky or flexible?<\/td>\r\n<td>Flexible<\/td>\r\n<td>Sticky<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Economic output: Primarily determined by aggregate demand or aggregate supply?<\/td>\r\n<td>Aggregate supply<\/td>\r\n<td>Aggregate demand<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Aggregate supply: vertical or upward-sloping?<\/td>\r\n<td>Vertical<\/td>\r\n<td>Upward-sloping<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Phillips curve vertical or downward-sloping<\/td>\r\n<td>Vertical<\/td>\r\n<td>Downward sloping<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Is aggregate demand a useful tool for controlling inflation?<\/td>\r\n<td>Yes<\/td>\r\n<td>Yes<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>What should be the primary area of policy emphasis for reducing unemployment?<\/td>\r\n<td>Reform labor market institutions to reduce natural rate of unemployment<\/td>\r\n<td>Increase aggregate demand to eliminate cyclical unemployment<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Is aggregate demand a useful tool for ending recession?<\/td>\r\n<td>At best, only in the short-run temporary sense, but may just increase inflation instead<\/td>\r\n<td>Yes<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<div class=\"textbox learning-objectives\">\r\n<h3>GLOSSARY<\/h3>\r\n[glossary-page]\r\n[glossary-term]Keynes\u2019 law:[\/glossary-term]\r\n[glossary-definition]\u201cdemand creates its own supply\u201d[\/glossary-definition]\r\n[glossary-term]neoclassical economists:[\/glossary-term]\r\n[glossary-definition]economists who generally emphasize the importance of aggregate supply in determining the size of the macroeconomy over the long run[\/glossary-definition]\r\n[glossary-term]Say\u2019s law:[\/glossary-term]\r\n[glossary-definition]\u201csupply creates its own demand\u201d[\/glossary-definition]\r\n[\/glossary-page]\r\n\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Objectives<\/h3>\n<ul>\n<li>Differentiate between the ways that Say\u2019s Law and Keynes\u2019 Law explain economic behavior<\/li>\n<\/ul>\n<\/div>\n<p>Macroeconomists over the last two centuries have often divided into two groups: those who argue that supply is the most important determinant of the size of the macroeconomy while demand just tags along, and those who argue that demand is the most important factor in the size of the macroeconomy while supply just tags along.<\/p>\n<h2>Say\u2019s Law and the Macroeconomics of Supply<\/h2>\n<div id=\"attachment_7862\" style=\"width: 372px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-7862\" class=\"wp-image-7862\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2043\/2015\/05\/15133349\/Grandi_fish_processing_conveyor_belt1_2011.jpg\" alt=\"Workers in a fish plant workers wear protective clothing and stand at stations performing various tasks.\" width=\"362\" height=\"240\" \/><\/p>\n<p id=\"caption-attachment-7862\" class=\"wp-caption-text\"><strong>Figure 1<\/strong>. Say&#8217;s law emphasizes the importance of production and supply.<\/p>\n<\/div>\n<p>Those economists who emphasize the role of supply in the macroeconomy often refer to Say&#8217;s law: supply creates its own demand. As a matter of historical accuracy, it seems clear that Say never actually wrote down this law and that it oversimplifies his beliefs, but the law lives on as useful shorthand for summarizing a point of view.<\/p>\n<p>The reasoning behind Say&#8217;s law is that each time output is produced and sold, the revenues represent an equivalent amount of income generated. This income allows the owners to purchase the amount of output that was produced. While widget workers may not want to spend their entire paycheck on widgets, they will want to buy <em>something<\/em>, if not what they produced then something some other workers produced. In the aggregate, supply creates its own demand, or more generally, aggregate supply drives the economy while aggregate demand responds passively.<\/p>\n<div class=\"textbox tryit\">\n<h3>Try It<\/h3>\n<p>\t<iframe id=\"lumen_assessment_7557\" class=\"resizable\" src=\"https:\/\/assessments.lumenlearning.com\/assessments\/load?assessment_id=7557&#38;embed=1&#38;external_user_id=&#38;external_context_id=&#38;iframe_resize_id=lumen_assessment_7557\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:400px;\"><br \/>\n\t<\/iframe><\/p>\n<\/div>\n<h2 id=\"m48740-ch24mod01_02\">Keynes\u2019 Law and the Macroeconomics of Demand<\/h2>\n<p>The alternative to Say\u2019s law, with its emphasis on supply, can be named <strong>Keynes&#8217; Law<\/strong><i>:\u00a0<\/i>\u201cDemand creates its own supply.\u201d As a matter of historical accuracy, just as Jean-Baptiste Say never wrote down anything as simpleminded as Say\u2019s law, John Maynard Keynes never\u00a0wrote down Keynes\u2019 law, but the law is a useful simplification that conveys a certain point of view.<\/p>\n<div id=\"attachment_7864\" style=\"width: 495px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-7864\" class=\"wp-image-7864\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2043\/2015\/05\/15134400\/8211477590_d76ef40d1d_o.jpg\" alt=\"People shopping in a crowed Macy's department store.\" width=\"485\" height=\"323\" \/><\/p>\n<p id=\"caption-attachment-7864\" class=\"wp-caption-text\"><strong>Figure 2<\/strong>. Keynes&#8217; Law emphasizes the role of demand.<\/p>\n<\/div>\n<p>When Keynes wrote his great work <em>The General Theory of Employment, Interest, and Money<\/em> during the <em class=\"glossterm no-emphasis\">Great Depression<\/em>\u00a0the 1930s, he pointed out that during the Depression, the capacity of the economy to supply goods and services had not changed much. U.S. unemployment rates soared higher than 20% from 1933 to 1935, but the number of possible workers had not increased or decreased much. Factories were closed and shuttered, but machinery and equipment had not disappeared. Technologies that had been invented in the 1920s were not un-invented and forgotten in the 1930s. Thus, Keynes argued that the Great Depression\u2014and many ordinary recessions as well\u2014were not caused by a drop in the ability of the economy to supply goods as measured by labor, physical capital, or technology. He argued the economy often produced less than its full potential, not because it was technically impossible to produce more with the existing workers and machines, but because a lack of demand in the economy as a whole led to inadequate incentives for firms to produce. In such cases, he argued, the level of GDP in the economy was not primarily determined by the potential of what the economy could supply, but rather by the amount of total demand.<\/p>\n<p>Keynes\u2019 law seems to apply fairly well in the short run of a few months to a few years, when many firms experience either a drop in demand for their output during a recession or so much demand that they have trouble producing enough during an economic boom. However, demand cannot tell the whole macroeconomic story, either. After all, if demand was all that mattered at the macroeconomic level, then the government could make the economy as large as it wanted just by pumping up total demand through a large increase in the government spending component or by legislating large tax cuts to push up the consumption component. Economies do, however, face genuine limits to how much they can produce, limits determined by the quantity of labor, physical capital, technology, and the institutional and market structures that bring these factors of production together. These constraints on what an economy can supply at the macroeconomic level do not disappear just because of an increase in demand.<\/p>\n<div class=\"textbox tryit\">\n<h3>Try It<\/h3>\n<p>\t<iframe id=\"lumen_assessment_7558\" class=\"resizable\" src=\"https:\/\/assessments.lumenlearning.com\/assessments\/load?assessment_id=7558&#38;embed=1&#38;external_user_id=&#38;external_context_id=&#38;iframe_resize_id=lumen_assessment_7558\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:400px;\"><br \/>\n\t<\/iframe><\/p>\n<\/div>\n<h2 id=\"m48740-ch24mod01_03\">Combining Supply and Demand in Macroeconomics<\/h2>\n<p>Two insights emerge from this overview of Say\u2019s law with its emphasis on macroeconomic supply and Keynes\u2019 law with its emphasis on macroeconomic demand. The first conclusion, which is not exactly a hot news flash, is that an economic approach focused only on the supply side or only on the demand side can be only a partial success. Both supply and demand need to be taken into account. The second conclusion is that since Keynes\u2019 law applies more accurately in the short run and Say\u2019s law applies more accurately in the long run, the tradeoffs and connections between the three goals of macroeconomics may be different in the short run and the long run.<\/p>\n<p>Table 1 summarizes the two macroeconomic perspectives.<\/p>\n<table id=\"ch24mod02_tab03\" summary=\"The table shows the key differences between Neoclassical Economics and Keynesian Economics. Column 1 lists a Summary of key economic considerations. Column 2 lists the stance of Neoclassical Economics. Column 3 lists the stance of Keynesian Economics. Focus: Long term or short term; Long-term (Neoclassical Economics); Short-term (Keynesian Economics). Prices and wages: sticky or flexible?; Flexible (Neoclassical Economics); Sticky (Keynesian Economics). Economic output: Primarily determined by aggregate demand or aggregate supply?; Aggregate supply (Neoclassical Economics); Aggregate demand (Keynesian Economics). Aggregate supply: vertical or upward-sloping?; Vertical (Neoclassical Economics); Upward-sloping (Keynesian Economics). Phillips curve vertical or downward-sloping; Vertical (Neoclassical Economics); Downward sloping (Keynesian Economics). Is aggregate demand a useful tool for controlling inflation?; Yes (Neoclassical Economics); Yes (Keynesian Economics). What should be the primary area of policy emphasis for reducing unemployment?; Reform labor market institutions to reduce natural rate of unemployment (Neoclassical Economics); Increase aggregate demand to eliminate cyclical unemployment (Keynesian Economics). Is aggregate demand a useful tool for ending recession?; At best, only in the short-run temporary sense, but may just increase inflation instead (Neoclassical Economics); Yes (Keynesian Economics).\">\n<thead>\n<tr>\n<th colspan=\"3\" scope=\"col\">Table 1. Comparing Neoclassical and Keynesian Economics<\/th>\n<\/tr>\n<tr>\n<th scope=\"col\">Summary<\/th>\n<th scope=\"col\">Neoclassical Economics<\/th>\n<th scope=\"col\">Keynesian Economics<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Focus: long-term or short term<\/td>\n<td>Long-term<\/td>\n<td>Short-term<\/td>\n<\/tr>\n<tr>\n<td>Prices and wages: sticky or flexible?<\/td>\n<td>Flexible<\/td>\n<td>Sticky<\/td>\n<\/tr>\n<tr>\n<td>Economic output: Primarily determined by aggregate demand or aggregate supply?<\/td>\n<td>Aggregate supply<\/td>\n<td>Aggregate demand<\/td>\n<\/tr>\n<tr>\n<td>Aggregate supply: vertical or upward-sloping?<\/td>\n<td>Vertical<\/td>\n<td>Upward-sloping<\/td>\n<\/tr>\n<tr>\n<td>Phillips curve vertical or downward-sloping<\/td>\n<td>Vertical<\/td>\n<td>Downward sloping<\/td>\n<\/tr>\n<tr>\n<td>Is aggregate demand a useful tool for controlling inflation?<\/td>\n<td>Yes<\/td>\n<td>Yes<\/td>\n<\/tr>\n<tr>\n<td>What should be the primary area of policy emphasis for reducing unemployment?<\/td>\n<td>Reform labor market institutions to reduce natural rate of unemployment<\/td>\n<td>Increase aggregate demand to eliminate cyclical unemployment<\/td>\n<\/tr>\n<tr>\n<td>Is aggregate demand a useful tool for ending recession?<\/td>\n<td>At best, only in the short-run temporary sense, but may just increase inflation instead<\/td>\n<td>Yes<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div class=\"textbox learning-objectives\">\n<h3>GLOSSARY<\/h3>\n<div class=\"titlepage\">\n<dl>\n<dt>Keynes\u2019 law:<\/dt>\n<dd>\u201cdemand creates its own supply\u201d<\/dd>\n<dt>neoclassical economists:<\/dt>\n<dd>economists who generally emphasize the importance of aggregate supply in determining the size of the macroeconomy over the long run<\/dd>\n<dt>Say\u2019s law:<\/dt>\n<dd>\u201csupply creates its own demand\u201d<\/dd>\n<\/dl>\n<\/div>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-424\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>The Building Blocks of Keynesian Analysis. <strong>Authored by<\/strong>: OpenStax College. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/cnx.org\/contents\/vEmOH-_p@4.44:VCQgDxyi@4\/The-Building-Blocks-of-Keynesi\">https:\/\/cnx.org\/contents\/vEmOH-_p@4.44:VCQgDxyi@4\/The-Building-Blocks-of-Keynesi<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em>. <strong>License Terms<\/strong>: Download for free at http:\/\/cnx.org\/contents\/bc498e1f-efe9-43a0-8dea-d3569ad09a82@4.44<\/li><li>Fish processing plant. <strong>Authored by<\/strong>: Jabbi. <strong>Provided by<\/strong>: Wikimedia. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/commons.wikimedia.org\/wiki\/File:Grandi_fish_processing_conveyor_belt1_2011.jpg\">https:\/\/commons.wikimedia.org\/wiki\/File:Grandi_fish_processing_conveyor_belt1_2011.jpg<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><li>Black Friday. <strong>Authored by<\/strong>: Diariocritico de Venezuela. <strong>Provided by<\/strong>: Flickr. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.flickr.com\/photos\/diariocriticove\/8211477590\">https:\/\/www.flickr.com\/photos\/diariocriticove\/8211477590<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><li>Table from The Policy Implications of the Neoclassical Perspective. <strong>Provided by<\/strong>: OpenStax College. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/cnx.org\/contents\/vEmOH-_p@4.4:33A-gaO1@5\/The-Policy-Implications-of-the\">https:\/\/cnx.org\/contents\/vEmOH-_p@4.4:33A-gaO1@5\/The-Policy-Implications-of-the<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em>. <strong>License Terms<\/strong>: Download for free at http:\/\/cnx.org\/contents\/4061c832-098e-4b3c-a1d9-7eb593a2cb31@11.11<\/li><li>The Policy Implications of the Neoclassical Perspective. <strong>Provided by<\/strong>: OpenStax College. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/cnx.org\/contents\/vEmOH-_p@4.44:33A-gaO1@6\/The-Policy-Implications-of-the\">https:\/\/cnx.org\/contents\/vEmOH-_p@4.44:33A-gaO1@6\/The-Policy-Implications-of-the<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em>. <strong>License Terms<\/strong>: Download for free at http:\/\/cnx.org\/contents\/bc498e1f-efe9-43a0-8dea-d3569ad09a82@4.44<\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":74,"menu_order":18,"template":"","meta":{"_candela_citation":"[{\"type\":\"cc\",\"description\":\"The Building Blocks of Keynesian Analysis\",\"author\":\"OpenStax College\",\"organization\":\"\",\"url\":\"https:\/\/cnx.org\/contents\/vEmOH-_p@4.44:VCQgDxyi@4\/The-Building-Blocks-of-Keynesi\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"Download for free at http:\/\/cnx.org\/contents\/bc498e1f-efe9-43a0-8dea-d3569ad09a82@4.44\"},{\"type\":\"cc\",\"description\":\"Fish processing 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