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wrong with mainstream economic theory, which was unable to foresee these types of economic turmoil; and thirdly, to review … macroeconomic theory, re-evaluating Keynes’ original contribution to economic analysis and pointing out the need to rebuild …
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The short-run macroeconomic effectiveness of fiscal policy depends on the effect of policy on AD and the effect of AD on output. This paper examines how macroeconomic perspectives (Keynesian, Post Keynesian, monetarist, classical, new classical, and new Keynesian) describe the effect of AD on...
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