How quickly can an economy recover from a shock? John Maynard Keynes challenges the classical economist view of a self-correcting economy with his 1936 work, The General Theory of Employment, Interest and Money. A short view features the highlights of Keynes's connection between aggregate demand and employment levels, and how a sudden dip in the economy requires additional intervention to right itself due to these factors.
- Have learners research historical examples of Keynes's theory in 20th and 21st century economic crises
- Assign the video for homework the night before a discussion about aggregate demand
- Find the full version of the analysis at the publisher's website with a free trial membership or paid subscription
- This video is hosted on YouTube
- An excellent contribution to a discussion on supply and demand in the context of the workforce
- Uses animation to explore a complex theory in an understandable way