We propose a microeconomic foundation of the multiplier effect and that of the consumption function using a dynamic … demand through a multiplier-like process but that the implication is quite different. It works through not an increase in … consumption function ; multiplier effect ; Keynesian Cross ; persistent unemployment ; aggregate demand …

recession. It is an application of the Keynesian multiplier theory, which was expounded in Keynes' 1936 economic treatise, The … General Theory of Employment, Interest and Money. Post-1936 economic history has given the multiplier theory mixed reviews … economist and journalist. He discussed the multiplier theory in the 1840s, more than a generation before John Maynard Keynes …

aggregate demand deficiency. We show that an increase in government purchases boosts GDP through a multiplier process, but the …