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- Principle_of_effective_demand abstract "In Keynesian Economics, the principle of effective demand is the principle that the aggregate demand function and the aggregate supply function intersect each other at the point of effective demand generally entailing under-employment and under-capacity utilization. That is to say, "demand creates its own supply" in contrast to the Say's law which insists "supply creates its own demand". According to the principle of effective demand, the aggregate demand determines the level of output and employment in a country. "Principle of effective demand" is the title of chapter 3 of Keynes's General theory.Strangely enough, although the title of the chapter of General theory is "Principle of effective demand", the "principle" of effective demand is not stated in detail in the chapter. After the term is mentioned on page 31, it is not mentioned again in the whole book. In his General theory, Keynes defines the concept of an aggregate demand and an aggregate supply, then he defines the concept of effective demand as the point of intersection of the two aggregate functions. At this point of intersection, the aggregate demand becomes "effective".".
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- Principle_of_effective_demand wikiPageRevisionID "680337669".
- Principle_of_effective_demand wikiPageWikiLink Aggregate_demand.
- Principle_of_effective_demand wikiPageWikiLink Aggregate_supply.
- Principle_of_effective_demand wikiPageWikiLink Category:Demand.
- Principle_of_effective_demand wikiPageWikiLink Category:Keynesian_economics.
- Principle_of_effective_demand wikiPageWikiLink Category:Macroeconomic_aggregates.
- Principle_of_effective_demand wikiPageWikiLink Effective_demand.
- Principle_of_effective_demand wikiPageWikiLink Keynesian_Economics.
- Principle_of_effective_demand wikiPageWikiLink Keynesian_economics.
- Principle_of_effective_demand wikiPageWikiLink Says_law.
- Principle_of_effective_demand wikiPageWikiLink The_General_Theory_of_Employment,_Interest_and_Money.
- Principle_of_effective_demand wikiPageWikiLinkText "Principle of effective demand".
- Principle_of_effective_demand hasPhotoCollection Principle_of_effective_demand.
- Principle_of_effective_demand wikiPageUsesTemplate Template:Cite_book.
- Principle_of_effective_demand wikiPageUsesTemplate Template:Reflist.
- Principle_of_effective_demand subject Category:Demand.
- Principle_of_effective_demand subject Category:Keynesian_economics.
- Principle_of_effective_demand subject Category:Macroeconomic_aggregates.
- Principle_of_effective_demand hypernym Principle.
- Principle_of_effective_demand type Airline.
- Principle_of_effective_demand comment "In Keynesian Economics, the principle of effective demand is the principle that the aggregate demand function and the aggregate supply function intersect each other at the point of effective demand generally entailing under-employment and under-capacity utilization. That is to say, "demand creates its own supply" in contrast to the Say's law which insists "supply creates its own demand".".
- Principle_of_effective_demand label "Principle of effective demand".
- Principle_of_effective_demand wasDerivedFrom Principle_of_effective_demand?oldid=680337669.
- Principle_of_effective_demand isPrimaryTopicOf Principle_of_effective_demand.