1a Explain the logic behind Say’s law and how it really only makes sense in a barter economy or where money is simply an aid to exchange. [10]
1b. Explain how the Keynesian view of how a monetary economy functions challenged Say’s law. [20]
1c The debate between orthodox Keynesians and their monetarist critics concentrated on the shape of the Aggregate Supply curve. Describe the opposing positions and explain how real live economic and theoretical developments in the 1970s and later undermined orthodox Keynesianism. [20]
1a Explain the logic behind Say’s law and how it really only makes sense in a barter economy or where money is simply an aid to exchange. [10]
1b. Explain how the Keynesian view of how a monetary economy functions challenged Say’s law. [20]
1c The debate between orthodox Keynesians and their monetarist critics concentrated on the shape of the Aggregate Supply curve. Describe the opposing positions and explain how real live economic and theoretical developments in the 1970s and later undermined orthodox Keynesianism. [20]