Position Paper in Economic Theory

Topics: Keynesian economics, John Maynard Keynes, Macroeconomics Pages: 2 (535 words) Published: August 11, 2012
1. Thomas Robert Malthus
Economic theory:
In his famous treatise 'An Essay on the Principles of Population', Malthus stated that, The populations of the world would increase in geometric proportions while the food resources available for them would increase only in arithmetic proportions. Source: http://www.buzzle.com/articles/thomas-malthus-theory-of-population.html Stand on the theory:

I agree to the point that he wants to convey. The human population will increase faster than the food supply. If people wouldn’t control the population, the food supply will have a shortage. People get it to the point that the supply for food will come to the level that there was a shortage of supply before they will find or get another supply for food. The effects of it, deprivation or disease will occur and it may happen to struggle for existence. One thing that I don’t agree with it base on what I read is that to retain the balance of population, one most adopt the measures of abortion, infanticide, delay in marriage and strict following of celibacy. 2. John Maynard Keynes

Economic theory:
Keynesian economics is a theory of total spending in the economy (called aggregate demand) and its effects on output inflation. 1. A Keynesian believes that aggregate demand is influenced by a host of economic decisions—both public and private—and sometimes behaves erratically.  2.  According to Keynesian theory, changes in aggregate demand, whether anticipated or unanticipated, have their greatest short-run effect on real output and employment, not on prices. 3. Keynesians believe that prices, and especially wages, respond slowly to changes in supply and demand, resulting in periodic shortages and surpluses, especially of labor. Source: http://www.econlib.org/library/Enc/KeynesianEconomics.html

Stand on the theory:
I agree on what he wanted to indicate in his theory. When the time the great depression strikes around the globe and it’s on the...
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