Principles of Macroeconomics / Unit 9 MAC 0802 short lesson, about 20 seconds
Aggregate Demand May Be Too Low
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The idea
The first building block is that total spending can be too low to employ everyone who wants work. The claim is not that resources vanished, but that nobody is buying.
In practice
Between 1929 and 1933 the factories, workers and technology were much as before, yet output collapsed.
Where people slip
That is evidence, not proof. Unit ten disputes the conclusion drawn from it.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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