{"id":378,"date":"2018-04-05T01:14:26","date_gmt":"2018-04-05T01:14:26","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/os-macroecon-e2\/chapter\/macroeconomic-perspectives-on-demand-and-supply\/"},"modified":"2018-05-08T14:58:07","modified_gmt":"2018-05-08T14:58:07","slug":"macroeconomic-perspectives-on-demand-and-supply","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-fmcc-macroeconomics\/chapter\/macroeconomic-perspectives-on-demand-and-supply\/","title":{"raw":"Macroeconomic Perspectives on Demand and Supply","rendered":"Macroeconomic Perspectives on Demand and Supply"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Objectives<\/h3>\r\nBy the end of this section, you will be able to:\r\n<ul>\r\n \t<li>Explain Say\u2019s Law and understand why it primarily applies in the long run<\/li>\r\n \t<li>Explain Keynes\u2019 Law and understand why it primarily applies in the short run<\/li>\r\n<\/ul>\r\n<\/div>\r\n<p id=\"ch24mod01_p01\">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>\r\n\r\n<section id=\"ch24mod01_01\">\r\n<h3>Say\u2019s Law and the Macroeconomics of Supply<\/h3>\r\n<p id=\"ch24mod01_p02\">Those economists who emphasize the role of supply in the macroeconomy often refer to the work of a famous early nineteenth century French economist named <strong><span class=\"no-emphasis\">Jean-Baptiste Say<\/span><\/strong> (1767\u20131832). <strong>Say\u2019s law<\/strong> is: \"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>\r\n<p id=\"ch24mod01_p03\">The intuition behind Say\u2019s law is that each time a good or service is produced and sold, it generates income that is earned for someone: a worker, a manager, an owner, or those who are workers, managers, and owners at firms that supply inputs along the chain of production. We alluded to this earlier in our discussion of the National Income approach to measuring GDP. The forces of supply and demand in individual markets will cause prices to rise and fall. The bottom line remains, however, that every sale represents income to someone, and so, Say\u2019s law argues, a given value of supply must create an equivalent value of demand somewhere else in the economy. Because Jean-Baptiste Say, <strong><span class=\"no-emphasis\">Adam Smith<\/span><\/strong>, and other economists writing around the turn of the nineteenth century who discussed this view were known as \"classical\" economists, modern economists who generally subscribe to the Say\u2019s law view on the importance of supply for determining the size of the macroeconomy are called <strong>neoclassical economists<\/strong>.<\/p>\r\n<p id=\"ch24mod01_p04\">If <strong><span class=\"no-emphasis\">supply<\/span><\/strong> always creates exactly enough demand at the macroeconomic level, then (as Say himself recognized) it is hard to understand why periods of recession and high unemployment should ever occur. To be sure, even if total supply always creates an equal amount of total demand, the economy could still experience a situation of some firms earning profits while other firms suffer losses. Nevertheless, a <span class=\"no-emphasis\">recession<\/span> is not a situation where all business failures are exactly counterbalanced by an offsetting number of successes. A <strong>recession<\/strong> is a situation in which the economy as a whole is shrinking in size, business failures outnumber the remaining success stories, and many firms end up suffering losses and laying off workers.<\/p>\r\n<p id=\"ch24mod01_p05\">Say\u2019s law that supply creates its own <strong><span class=\"no-emphasis\">demand<\/span><\/strong> does seem a good approximation for the long run. Over periods of some years or decades, as the productive power of an economy to supply goods and services increases, total demand in the economy grows at roughly the same pace. However, over shorter time horizons of a few months or even years, recessions or even depressions occur in which firms, as a group, seem to face a lack of demand for their products.<\/p>\r\n\r\n<\/section><section id=\"ch24mod01_02\">\r\n<h3>Keynes\u2019 Law and the Macroeconomics of Demand<\/h3>\r\n<p id=\"ch24mod01_p06\">The alternative to Say\u2019s law, with its emphasis on supply, is <strong>Keynes\u2019 law<\/strong>: \"Demand creates its own supply.\" As a matter of historical accuracy, just as Jean-Baptiste Say never wrote down anything as simpleminded as Say\u2019s law, <strong><span class=\"no-emphasis\">John Maynard Keynes<\/span><\/strong> never wrote down Keynes\u2019 law, but the law is a useful simplification that conveys a certain point of view.<\/p>\r\n<p id=\"ch24mod01_p07\">When Keynes wrote his influential work <em>The General Theory of Employment, Interest, and Money<\/em> during the 1930s <strong><span class=\"no-emphasis\">Great Depression<\/span><\/strong>, he pointed out that during the Depression, the economy's capacity 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 closed, 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>\r\n<p id=\"ch24mod01_p08\">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>\r\n\r\n<\/section><section id=\"ch24mod01_03\">\r\n<h3>Combining Supply and Demand in Macroeconomics<\/h3>\r\n<p id=\"ch24mod01_p09\">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. We need to take into account both supply and demand. 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>\r\n\r\n<\/section><section id=\"ch24mod01_summ\" class=\"summary\">\r\n<div class=\"textbox key-takeaways\">\r\n<h3>Key Concepts and Summary<\/h3>\r\n<section id=\"ch24mod01_summ\" class=\"summary\">\r\n<p id=\"ch24mod01_p10\">Neoclassical economists emphasize Say\u2019s law, which holds that supply creates its own demand. Keynesian economists emphasize Keynes\u2019 law, which holds that demand creates its own supply. Many mainstream economists take a Keynesian perspective, emphasizing the importance of aggregate demand, for the short run, and a neoclassical perspective, emphasizing the importance of aggregate supply, for the long run.<\/p>\r\n\r\n<\/section><\/div>\r\n<div class=\"textbox exercises\">\r\n<h3>Self-Check Questions<\/h3>\r\n<section id=\"ch24mod01_sques\" class=\"self-check-questions\">\r\n<div id=\"ch24mod01_sques01\">\r\n<div id=\"ch24mod01_squesp01\">\r\n<p id=\"ch24mod01_p11\">Describe the mechanism by which supply creates its own demand.<\/p>\r\n[reveal-answer q=\"781079\"]Show Solution[\/reveal-answer]\r\n[hidden-answer a=\"781079\"]In order to supply goods, suppliers must employ workers, whose incomes increase as a result of their labor. They use this additional income to demand goods of an equivalent value to those they supply.[\/hidden-answer]\r\n\r\n<\/div>\r\n<div id=\"ch24mod01_sques01s\"><\/div>\r\n<\/div>\r\n<div id=\"ch24mod01_sques02\">\r\n<div id=\"ch24mod01_squesp02\">\r\n<p id=\"ch24mod01_p13\">Describe the mechanism by which demand creates its own supply.<\/p>\r\n\r\n<\/div>\r\n<div id=\"ch24mod01_sques02s\">\r\n\r\n[reveal-answer q=\"891129\"]Show Solution[\/reveal-answer]\r\n[hidden-answer a=\"891129\"]When consumers demand more goods than are available on the market, prices are driven higher and the additional opportunities for profit induce more suppliers to enter the market, producing an equivalent amount to that which is demanded.[\/hidden-answer]\r\n\r\n&nbsp;\r\n\r\n<\/div>\r\n<\/div>\r\n<\/section><section id=\"ch24mod01_rques\" class=\"review-questions\">\r\n<h3>Review Questions<\/h3>\r\n<div id=\"ch24mod01_rques02\">\r\n<div id=\"ch24mod01_rques01p\">\r\n<p id=\"ch24mod01_p15\">What is Say\u2019s law?<\/p>\r\n\r\n<\/div>\r\n<\/div>\r\n<div id=\"ch24mod01_rques04\">\r\n<div id=\"ch24mod01_rques03p\">\r\n<p id=\"ch24mod01_p17\">What is Keynes\u2019 law?<\/p>\r\n\r\n<\/div>\r\n<\/div>\r\n<div id=\"ch24mod01_rques05\">\r\n<div id=\"ch24mod01_rques04p\">\r\n<p id=\"ch24mod01_p18\">Do neoclassical economists believe in Keynes\u2019 law or Say\u2019s law?<\/p>\r\n\r\n<\/div>\r\n<\/div>\r\n<div id=\"ch24mod01_rques06\">\r\n<div id=\"ch24mod01_rques05p\">\r\n<p id=\"ch24mod01_p19\">Does Say\u2019s law apply more accurately in the long run or the short run? What about Keynes\u2019 law?<\/p>\r\n&nbsp;\r\n\r\n<\/div>\r\n<\/div>\r\n<\/section><section id=\"ch24mod01_ctques\" class=\"critical-thinking\">\r\n<h3>Critical Thinking Question<\/h3>\r\n<div id=\"ch24mod01_ctques01\">\r\n<div id=\"ch24mod01_ctques01p\">\r\n<p id=\"ch24mod01_p20\">Why would an economist choose either the neoclassical perspective or the Keynesian perspective, but not both?<\/p>\r\n\r\n<\/div>\r\n<\/div>\r\n<\/section><\/div>\r\n<\/section><section id=\"ch24mod01_ref\" class=\"references\">\r\n<h3>References<\/h3>\r\n<p id=\"ch24mod01_ref01\">Keynes, John Maynard. <em>The General Theory of Employment, Interest and Money<\/em>. London: Palgrave Macmillan, 1936.<\/p>\r\n<p id=\"ch24mod01_ref02\">U.S. Department of Commerce: United States Census Bureau. \"New Residential Sales: Historical Data.\" http:\/\/www.census.gov\/construction\/nrs\/historical_data\/.<\/p>\r\n\r\n<\/section>\r\n<div>\r\n<div class=\"textbox shaded\">\r\n<div>\r\n<h3>Glossary<\/h3>\r\n<dl id=\"ch24mod01_gl01\">\r\n \t<dt>Keynes\u2019 law<\/dt>\r\n \t<dd id=\"ch24mod01_gl01m\">\"demand creates its own supply\"<\/dd>\r\n<\/dl>\r\n<dl id=\"ch24mod01_gl02\">\r\n \t<dt>neoclassical economists<\/dt>\r\n \t<dd id=\"ch24mod01_gl02m\">economists who generally emphasize the importance of aggregate supply in determining the size of the macroeconomy over the long run<\/dd>\r\n<\/dl>\r\n<dl id=\"ch24mod01_gl03\">\r\n \t<dt>Say\u2019s law<\/dt>\r\n \t<dd id=\"ch24mod01_gl03m\">\"supply creates its own demand\"<\/dd>\r\n<\/dl>\r\n<\/div>\r\n<\/div>\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Objectives<\/h3>\n<p>By the end of this section, you will be able to:<\/p>\n<ul>\n<li>Explain Say\u2019s Law and understand why it primarily applies in the long run<\/li>\n<li>Explain Keynes\u2019 Law and understand why it primarily applies in the short run<\/li>\n<\/ul>\n<\/div>\n<p id=\"ch24mod01_p01\">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<section id=\"ch24mod01_01\">\n<h3>Say\u2019s Law and the Macroeconomics of Supply<\/h3>\n<p id=\"ch24mod01_p02\">Those economists who emphasize the role of supply in the macroeconomy often refer to the work of a famous early nineteenth century French economist named <strong><span class=\"no-emphasis\">Jean-Baptiste Say<\/span><\/strong> (1767\u20131832). <strong>Say\u2019s law<\/strong> is: &#8220;Supply creates its own demand.&#8221; 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 id=\"ch24mod01_p03\">The intuition behind Say\u2019s law is that each time a good or service is produced and sold, it generates income that is earned for someone: a worker, a manager, an owner, or those who are workers, managers, and owners at firms that supply inputs along the chain of production. We alluded to this earlier in our discussion of the National Income approach to measuring GDP. The forces of supply and demand in individual markets will cause prices to rise and fall. The bottom line remains, however, that every sale represents income to someone, and so, Say\u2019s law argues, a given value of supply must create an equivalent value of demand somewhere else in the economy. Because Jean-Baptiste Say, <strong><span class=\"no-emphasis\">Adam Smith<\/span><\/strong>, and other economists writing around the turn of the nineteenth century who discussed this view were known as &#8220;classical&#8221; economists, modern economists who generally subscribe to the Say\u2019s law view on the importance of supply for determining the size of the macroeconomy are called <strong>neoclassical economists<\/strong>.<\/p>\n<p id=\"ch24mod01_p04\">If <strong><span class=\"no-emphasis\">supply<\/span><\/strong> always creates exactly enough demand at the macroeconomic level, then (as Say himself recognized) it is hard to understand why periods of recession and high unemployment should ever occur. To be sure, even if total supply always creates an equal amount of total demand, the economy could still experience a situation of some firms earning profits while other firms suffer losses. Nevertheless, a <span class=\"no-emphasis\">recession<\/span> is not a situation where all business failures are exactly counterbalanced by an offsetting number of successes. A <strong>recession<\/strong> is a situation in which the economy as a whole is shrinking in size, business failures outnumber the remaining success stories, and many firms end up suffering losses and laying off workers.<\/p>\n<p id=\"ch24mod01_p05\">Say\u2019s law that supply creates its own <strong><span class=\"no-emphasis\">demand<\/span><\/strong> does seem a good approximation for the long run. Over periods of some years or decades, as the productive power of an economy to supply goods and services increases, total demand in the economy grows at roughly the same pace. However, over shorter time horizons of a few months or even years, recessions or even depressions occur in which firms, as a group, seem to face a lack of demand for their products.<\/p>\n<\/section>\n<section id=\"ch24mod01_02\">\n<h3>Keynes\u2019 Law and the Macroeconomics of Demand<\/h3>\n<p id=\"ch24mod01_p06\">The alternative to Say\u2019s law, with its emphasis on supply, is <strong>Keynes\u2019 law<\/strong>: &#8220;Demand creates its own supply.&#8221; As a matter of historical accuracy, just as Jean-Baptiste Say never wrote down anything as simpleminded as Say\u2019s law, <strong><span class=\"no-emphasis\">John Maynard Keynes<\/span><\/strong> never wrote down Keynes\u2019 law, but the law is a useful simplification that conveys a certain point of view.<\/p>\n<p id=\"ch24mod01_p07\">When Keynes wrote his influential work <em>The General Theory of Employment, Interest, and Money<\/em> during the 1930s <strong><span class=\"no-emphasis\">Great Depression<\/span><\/strong>, he pointed out that during the Depression, the economy&#8217;s capacity 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 closed, 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 id=\"ch24mod01_p08\">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<\/section>\n<section id=\"ch24mod01_03\">\n<h3>Combining Supply and Demand in Macroeconomics<\/h3>\n<p id=\"ch24mod01_p09\">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. We need to take into account both supply and demand. 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<\/section>\n<section id=\"ch24mod01_summ\" class=\"summary\">\n<div class=\"textbox key-takeaways\">\n<h3>Key Concepts and Summary<\/h3>\n<section id=\"ch24mod01_summ\" class=\"summary\">\n<p id=\"ch24mod01_p10\">Neoclassical economists emphasize Say\u2019s law, which holds that supply creates its own demand. Keynesian economists emphasize Keynes\u2019 law, which holds that demand creates its own supply. Many mainstream economists take a Keynesian perspective, emphasizing the importance of aggregate demand, for the short run, and a neoclassical perspective, emphasizing the importance of aggregate supply, for the long run.<\/p>\n<\/section>\n<\/div>\n<div class=\"textbox exercises\">\n<h3>Self-Check Questions<\/h3>\n<section id=\"ch24mod01_sques\" class=\"self-check-questions\">\n<div id=\"ch24mod01_sques01\">\n<div id=\"ch24mod01_squesp01\">\n<p id=\"ch24mod01_p11\">Describe the mechanism by which supply creates its own demand.<\/p>\n<div class=\"qa-wrapper\" style=\"display: block\"><span class=\"show-answer collapsed\" style=\"cursor: pointer\" data-target=\"q781079\">Show Solution<\/span><\/p>\n<div id=\"q781079\" class=\"hidden-answer\" style=\"display: none\">In order to supply goods, suppliers must employ workers, whose incomes increase as a result of their labor. They use this additional income to demand goods of an equivalent value to those they supply.<\/div>\n<\/div>\n<\/div>\n<div id=\"ch24mod01_sques01s\"><\/div>\n<\/div>\n<div id=\"ch24mod01_sques02\">\n<div id=\"ch24mod01_squesp02\">\n<p id=\"ch24mod01_p13\">Describe the mechanism by which demand creates its own supply.<\/p>\n<\/div>\n<div id=\"ch24mod01_sques02s\">\n<div class=\"qa-wrapper\" style=\"display: block\"><span class=\"show-answer collapsed\" style=\"cursor: pointer\" data-target=\"q891129\">Show Solution<\/span><\/p>\n<div id=\"q891129\" class=\"hidden-answer\" style=\"display: none\">When consumers demand more goods than are available on the market, prices are driven higher and the additional opportunities for profit induce more suppliers to enter the market, producing an equivalent amount to that which is demanded.<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<\/div>\n<\/div>\n<\/section>\n<section id=\"ch24mod01_rques\" class=\"review-questions\">\n<h3>Review Questions<\/h3>\n<div id=\"ch24mod01_rques02\">\n<div id=\"ch24mod01_rques01p\">\n<p id=\"ch24mod01_p15\">What is Say\u2019s law?<\/p>\n<\/div>\n<\/div>\n<div id=\"ch24mod01_rques04\">\n<div id=\"ch24mod01_rques03p\">\n<p id=\"ch24mod01_p17\">What is Keynes\u2019 law?<\/p>\n<\/div>\n<\/div>\n<div id=\"ch24mod01_rques05\">\n<div id=\"ch24mod01_rques04p\">\n<p id=\"ch24mod01_p18\">Do neoclassical economists believe in Keynes\u2019 law or Say\u2019s law?<\/p>\n<\/div>\n<\/div>\n<div id=\"ch24mod01_rques06\">\n<div id=\"ch24mod01_rques05p\">\n<p id=\"ch24mod01_p19\">Does Say\u2019s law apply more accurately in the long run or the short run? What about Keynes\u2019 law?<\/p>\n<p>&nbsp;<\/p>\n<\/div>\n<\/div>\n<\/section>\n<section id=\"ch24mod01_ctques\" class=\"critical-thinking\">\n<h3>Critical Thinking Question<\/h3>\n<div id=\"ch24mod01_ctques01\">\n<div id=\"ch24mod01_ctques01p\">\n<p id=\"ch24mod01_p20\">Why would an economist choose either the neoclassical perspective or the Keynesian perspective, but not both?<\/p>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<\/section>\n<section id=\"ch24mod01_ref\" class=\"references\">\n<h3>References<\/h3>\n<p id=\"ch24mod01_ref01\">Keynes, John Maynard. <em>The General Theory of Employment, Interest and Money<\/em>. London: Palgrave Macmillan, 1936.<\/p>\n<p id=\"ch24mod01_ref02\">U.S. Department of Commerce: United States Census Bureau. &#8220;New Residential Sales: Historical Data.&#8221; http:\/\/www.census.gov\/construction\/nrs\/historical_data\/.<\/p>\n<\/section>\n<div>\n<div class=\"textbox shaded\">\n<div>\n<h3>Glossary<\/h3>\n<dl id=\"ch24mod01_gl01\">\n<dt>Keynes\u2019 law<\/dt>\n<dd id=\"ch24mod01_gl01m\">&#8220;demand creates its own supply&#8221;<\/dd>\n<\/dl>\n<dl id=\"ch24mod01_gl02\">\n<dt>neoclassical economists<\/dt>\n<dd id=\"ch24mod01_gl02m\">economists who generally emphasize the importance of aggregate supply in determining the size of the macroeconomy over the long run<\/dd>\n<\/dl>\n<dl id=\"ch24mod01_gl03\">\n<dt>Say\u2019s law<\/dt>\n<dd id=\"ch24mod01_gl03m\">&#8220;supply creates its own demand&#8221;<\/dd>\n<\/dl>\n<\/div>\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-378\">\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>Principles of Macroeconomics 2e. <strong>Provided by<\/strong>: OpenStax. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"http:\/\/cnx.org\/contents\/27f59064-990e-48f1-b604-5188b9086c29@5.5\">http:\/\/cnx.org\/contents\/27f59064-990e-48f1-b604-5188b9086c29@5.5<\/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\/27f59064-990e-48f1-b604-5188b9086c29@5.5<\/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":2,"menu_order":2,"template":"","meta":{"_candela_citation":"[{\"type\":\"cc\",\"description\":\"Principles of Macroeconomics 2e\",\"author\":\"\",\"organization\":\"OpenStax\",\"url\":\"http:\/\/cnx.org\/contents\/27f59064-990e-48f1-b604-5188b9086c29@5.5\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"Download for free at http:\/\/cnx.org\/contents\/27f59064-990e-48f1-b604-5188b9086c29@5.5\"}]","CANDELA_OUTCOMES_GUID":"","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-378","chapter","type-chapter","status-publish","hentry"],"part":374,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/suny-fmcc-macroeconomics\/wp-json\/pressbooks\/v2\/chapters\/378","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/suny-fmcc-macroeconomics\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/suny-fmcc-macroeconomics\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-fmcc-macroeconomics\/wp-json\/wp\/v2\/users\/2"}],"version-history":[{"count":3,"href":"https:\/\/courses.lumenlearning.com\/suny-fmcc-macroeconomics\/wp-json\/pressbooks\/v2\/chapters\/378\/revisions"}],"predecessor-version":[{"id":1041,"href":"https:\/\/courses.lumenlearning.com\/suny-fmcc-macroeconomics\/wp-json\/pressbooks\/v2\/chapters\/378\/revisions\/1041"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/suny-fmcc-macroeconomics\/wp-json\/pressbooks\/v2\/parts\/374"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/suny-fmcc-macroeconomics\/wp-json\/pressbooks\/v2\/chapters\/378\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/suny-fmcc-macroeconomics\/wp-json\/wp\/v2\/media?parent=378"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-fmcc-macroeconomics\/wp-json\/pressbooks\/v2\/chapter-type?post=378"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-fmcc-macroeconomics\/wp-json\/wp\/v2\/contributor?post=378"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-fmcc-macroeconomics\/wp-json\/wp\/v2\/license?post=378"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}