Macroeconorrics as a separate branch of economics energed athr the - TopicsExpress

Macroeconorrics as a separate branch of economics energed athr the British economist Jotn May nard kiyne puhlinhed his ulebrated book the genural theory of Errploy ment interest and Money in 1936 The dorrinant thinking in ecoromics before keynes was that all the labowrest who are ready to work will tind employment and all the tactories will be worting at this full copacity This schoof of thonght is known as the clestical tradition However, the greet Depremion of 1929 and employment levely in the courtries of Eurpoe and North Amesica tall by huge amounts Demand for goodi in the merket was low many tactories were lyivs idle wokers were thrown out of jobs. In USA form 1929 to 1933, uremployment rore from 3 pcscrt to 25 perant Over the same pisiod aggregate output in USA letll by alout 33 peront.

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