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KEYNESIAN THEORY: A theory of macroeconomics developed by John Maynard Keynes built on the proposition that aggregate demand is the primary source of business cycle instability, especially recessions. The basic structure of the Keynesian theory of economics was initially presented in Keynes' book The General Theory of Employment, Interest, and Money (1936).

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CONSUMPTION LINE

A graphical depiction of the relation between household sector consumption and income that forms one of the key building blocks for Keynesian economics. A consumption line is characterized by vertical intercept, which indicates autonomous consumption, and slope, which is the marginal propensity to consume and indicates induced consumption. The aggregate expenditures line used in Keynesian economics is derived by adding or stacking investment, government purchases, and net exports to the consumption line. Saving is indicated as the difference between the consumption line and the 45-degree guide line.

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Today, you are likely to spend a great deal of time at an auction hoping to buy either storage boxes for your income tax returns or an AC adapter for your CD player. Be on the lookout for door-to-door salesmen.
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Natural gas has no odor. The smell is added artificially so that leaks can be detected.
"Whenever you see a successful business, someone once made a courageous decision."

-- Peter F. Drucker, business strategist

LRAS
Long Run Aggregate Supply
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