{"id":311,"date":"2024-05-30T03:23:18","date_gmt":"2024-05-30T03:23:18","guid":{"rendered":"https:\/\/course.oeru.org\/maec102\/?page_id=311"},"modified":"2024-05-30T03:23:18","modified_gmt":"2024-05-30T03:23:18","slug":"theories-about-short-run-instability-supply-vs-demand","status":"publish","type":"page","link":"https:\/\/course.oeru.org\/maec102\/learning-pathways\/the-macroeconomic-model\/theories-about-short-run-instability-supply-vs-demand\/","title":{"rendered":"Theories about short-run instability: Supply vs Demand"},"content":{"rendered":"<div id=\"content\" class=\"mw-body container\" role=\"main\">\n<div class=\"row\">\n<div class=\"col-md-12\">\n<div class=\"panel\">\n<div class=\"panel-body\">\n<div id=\"bodyContent\">\n<div id=\"mw-content-text\" lang=\"en\" dir=\"ltr\" class=\"mw-content-ltr\">_<div class=\"panel iDevice\">\n\t<div class=\"panel-heading idevice-heading\">\n\t\t<div>\n\t\t\t<img decoding=\"async\" class=\"pedagogicalicon\" alt=\"reading\" src=\"https:\/\/course.oeru.org\/maec102\/wp-content\/themes\/oeru_course\/idevices\/Icon_reading.png\">\n\t\t<\/div>\n\t\t<div>\n\t\t\t<h2>Supply vs Demand<\/h2>\n\t\t<\/div>\n\t<\/div>\n\t<div class=\"panel-body\">\n\t\t<div class=\"col-md-12\">\n\t\t\t<\/p>\n<p>Currently the two main competing economic schools of thought are Keynesian and Supply-Side (sometimes called &#8220;trickle down&#8221;) economics.\n<\/p>\n<h2><span class=\"mw-headline\" id=\"Keynesian\">Keynesian<\/span><\/h2>\n<div class=\"thumb tright\">\n<div class=\"thumbinner thumbnail\" style=\"width:182px;\"><a href=\"https:\/\/wikieducator.org\/File:Keynes_1933.jpg\" class=\"image\"><img loading=\"lazy\" decoding=\"async\" alt=\"\" src=\"\/\/wikieducator.org\/images\/thumb\/0\/04\/Keynes_1933.jpg\/180px-Keynes_1933.jpg\" width=\"180\" height=\"187\" class=\"thumbimage img-responsive\"><\/a>  <\/p>\n<div class=\"thumbcaption\">Keynes 1933<\/div>\n<\/div>\n<\/div>\n<p>Read this article on <a rel=\"nofollow\" class=\"external free\" href=\"http:\/\/www.wikiwand.com\/en\/Keynesian_economics\">http:\/\/www.wikiwand.com\/en\/Keynesian_economics<\/a> Wikipedia: &#8220;Keynesian Economics&#8221;, which covers several aspects of contemporary macroeconomic thinking. Note the emphasis on managing aggregate demand by changing variables that can alter aggregate expenditures. Some economists argue it is easier and better to prompt changes in consumption, investment, government spending, and net exports than to prompt changes in variables that affect aggregate supply.\n<\/p>\n<p>\n<\/p>\n<p>\n<\/p>\n<p>\n<\/p>\n<p>\n<\/p>\n<h2><span class=\"mw-headline\" id=\"Supply-Side\">Supply-Side<\/span><\/h2>\n<div class=\"thumb tright\">\n<div class=\"thumbinner thumbnail\" style=\"width:182px;\"><a href=\"https:\/\/wikieducator.org\/File:Rmundell.jpg\" class=\"image\"><img loading=\"lazy\" decoding=\"async\" alt=\"\" src=\"\/\/wikieducator.org\/images\/thumb\/8\/89\/Rmundell.jpg\/180px-Rmundell.jpg\" width=\"180\" height=\"164\" class=\"thumbimage img-responsive\"><\/a>  <\/p>\n<div class=\"thumbcaption\">Robert Mundell: a key proponent of Supply-Side<\/div>\n<\/div>\n<\/div>\n<div class=\"thumb tright\">\n<div class=\"thumbinner thumbnail\" style=\"width:182px;\"><a href=\"https:\/\/wikieducator.org\/File:Artur_Laffer.jpg\" class=\"image\"><img loading=\"lazy\" decoding=\"async\" alt=\"\" src=\"\/\/wikieducator.org\/images\/thumb\/c\/ce\/Artur_Laffer.jpg\/180px-Artur_Laffer.jpg\" width=\"180\" height=\"249\" class=\"thumbimage img-responsive\"><\/a>  <\/p>\n<div class=\"thumbcaption\">Arthur Laffer: a key proponent of Supply-Side<\/div>\n<\/div>\n<\/div>\n<p>Read this article from Wikipedia about <a rel=\"nofollow\" class=\"external text\" href=\"http:\/\/www.wikiwand.com\/en\/Keynesian_economics\">&#8220;Keynesian Economics&#8221;<\/a>, which covers several aspects of contemporary macroeconomic thinking. Note the emphasis on managing aggregate supply by changing variables including tax rates, deregulating industries, providing incentives for employers to hire workers, and so forth. Some economists argue it is easier and better to prompt changes in the supply side than to prompt changes in variables that affect aggregate demand.\n<\/p>\n<p>\n<\/p>\n<p>\n\t\t<\/div>\n\t<\/div>\n<\/div><\/p>\n<p>\nHaving read these two articles, take a moment to write down your thinking on these two approaches to economic thought and, ultimately, economic policy in a WeNotes post.\n<\/p>\n<\/p>\n<div><p>You must be logged in to post to WEnotes.<\/p><\/div>\n<p><!-- \nNewPP limit report\nCPU time usage: 0.231 seconds\nReal time usage: 3.478 seconds\nPreprocessor visited node count: 115\/1000000\nPreprocessor generated node count: 826\/1000000\nPost\u2010expand include size: 4307\/2097152 bytes\nTemplate argument size: 2833\/2097152 bytes\nHighest expansion depth: 7\/40\nExpensive parser function count: 0\/100\n--><\/p>\n<p><!-- Saved in parser cache with key we_en-mw_:pcache:idhash:177073-0!*!*!!*!2!* and timestamp 20240530032314 and revision id 1035596\n -->\n<\/div>\n<div class=\"visualClear\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"row\">\n<div class=\"col-md-12\">\n<ul class=\"pager\">\n<li class=\"previous\">\n            <a href=\"\/maec102\/learning-pathways\/the-macroeconomic-model\/aggregate-supply-and-demand-simulator\">\u2190 Previous<\/a>\n          <\/li>\n<li class=\"next\">\n            <a href=\"\/maec102\/learning-pathways\/the-macroeconomic-model\/long-run-self-adjustment\">Next \u2192<\/a>\n          <\/li>\n<\/ul><\/div>\n<\/p><\/div>\n<div id=\"wenote-ids\"><script type='text\/javascript' id='wenotes-ids'>\n    var WEnotesSite = \"https:\/\/wikieducator.org\";\n    var WEnotesPath = \"\/Macroeconomics_activity_and_demand\/Short_run_instability\";\n    var WEnotesSiteID = \"0e3d258fbd36841f92259eefcd41d5e9\";\n    var WEnotesPathID = \"0ba0a1d9eaee95bf703293f02d53bf01\";\n    var WEnotesIDs = { site: \"https:\/\/wikieducator.org\", path: \"\/Macroeconomics_activity_and_demand\/Short_run_instability\", site_id: \"0e3d258fbd36841f92259eefcd41d5e9\", path_id: \"0ba0a1d9eaee95bf703293f02d53bf01\" };\n<\/script><\/div>\n<\/div>\n<footer><\/footer>\n","protected":false},"excerpt":{"rendered":"<p>_ Having read these two articles, take a moment to write down your thinking on these two approaches to economic thought and, ultimately, economic policy in a WeNotes post. \u2190 Previous Next \u2192<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":293,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-311","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/course.oeru.org\/maec102\/wp-json\/wp\/v2\/pages\/311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/course.oeru.org\/maec102\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/course.oeru.org\/maec102\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/course.oeru.org\/maec102\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/course.oeru.org\/maec102\/wp-json\/wp\/v2\/comments?post=311"}],"version-history":[{"count":1,"href":"https:\/\/course.oeru.org\/maec102\/wp-json\/wp\/v2\/pages\/311\/revisions"}],"predecessor-version":[{"id":312,"href":"https:\/\/course.oeru.org\/maec102\/wp-json\/wp\/v2\/pages\/311\/revisions\/312"}],"up":[{"embeddable":true,"href":"https:\/\/course.oeru.org\/maec102\/wp-json\/wp\/v2\/pages\/293"}],"wp:attachment":[{"href":"https:\/\/course.oeru.org\/maec102\/wp-json\/wp\/v2\/media?parent=311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}