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J M Keynes's Aggregate Supply Function, Z, is Simply Pigou's Aggregate Supply Function with Price and Profit Expectations Substituted for Realized Prices and Actual Economic Profit

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In September, 1933, Pigou's The Theory of Unemployment appeared. After reading it, Keynes decided that he would not … and profit expectations into the IS portion of the model. Keynes's model of an Aggregate Demand Function, D, and an … analysis in The Theory of Unemployment. Keynes improved on the mathematical modeling by explicitly integrating expected profits …

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