On Keynes’s Theory of the Aggregate Price Level in the Treatise: Any Help for Modern Aggregate Analysis?
The paper explores the theory of the aggregate price and profit in Keynes’s Treatise for its implications for modern macroeconomic analysis. Here profits are defined in terms of aggregate investment and saving. Deriving aggregate total revenue and aggregate total cost from this price theory, the paper shows how to construct a version of the Keynesian … Continued