THREE ECONOMIC THEORIES. an economy will always move towards equilibrium at full capacity and full employment Aggregate demand will adjust to full potential GDP, assisted by flexible wages and prices (wage contracts and resource price agreements can be renegotiated)
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
THREE ECONOMIC THEORIES
are flexible and adjust to equate supply and
demand; Market is SELF-CORRECTING!!!!
AUTOMATIC/BUILT IN STABILIZERS
Problems of Fiscal Policy