Page 126 - DECO402_Macro Economics

Unit-13: Keynesian Approach

13.3 Summary Notes

y The summary of Keynesian Theory related to Money and Price is so—When the unemployment
condition is found in a economy, till then Production and Employment increases due to
increment in quantity of money. On coming the full employment condition because of
increasing in quantity of money prices also started to increase in the same proportion.

13.4 Keywords

y Inflation—Money-inflation.
y Approach—Understanding aspect.

13.5 Review Questions

1. Explain ‘Keynesian Theory’.
2. What do you understand by the Superiority of Keynesian Approach?

Answers: Self Assessment

1. indirectly 2. interest 3. (a) 4. (b)
5. (a) 6. (a) 7. True 8. False
9. True 10. False.

13.6 Further Readings

Books 1. Macroeconomics— S.K. Chakravarti, Himalaya Publishing House, 2010.
2. Macroeconomics: Economic Growth, Fluctuations and Policy— Robert
E. Hall and David H. Paipal, vaina Books 2010.
3. Macroeconomics: Theory and Policy— H. L. Ahuja, S. Chand Publisher,
2010.
4. Microeconomics— Mohan Srivastava, DND Publications, 2010.

LOVELY PROFESSIONAL UNIVERSITY 119