Since the government plays a very important role in a modern economy, we include the government in the analysis of income determination. The government is the third basic unit of an economy. Its basic objective is to create more jobs, promote faster economic growth and thus ensure maximum welfare. This is why it spends lots […]
The Keynesian Three-Sector Model of National Income | Macroeconomics
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Keynesian Two-Sector Model of Income Determination | Macroeconomics
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According to the Keynesian theory, level of employment is determined in a free market-based capitalist economy in the short run when the size of the labour force and capital stock remain constant and the state of technology (which shows how inputs can be converted into output) also remains unchanged. In addition, Keynes assumed that the […]
Oligopoly: List of Oligopoly Models | Markets | Microeconomics
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List of oligopoly models: 1. Cournot’s Duopoly Model 2. Bertrand’s Duopoly Model 3. Chamberlin’s Small Group Model 4. Stackelberg’s Duopoly 5. Sweezy’s Kinked Demand Model. 1. Cournot’s Duopoly Model: Cournot founded the theory of duopoly. His duopoly model consists of two firms marketing a homogenous good. Cournot uses the example of mineral spring water, whose […]