Brief Outline of Topics Covered in Lecture 16:
Walras (ch. 11) pgs. 305-319
Video:
Lecture 16 [Media Player] - Fall 2007
Lecture 16 [Google video] - Fall 2007
Economics 493 Lecture 16 |
Review Questions for Lecture 16 (also added to the Review Questions - Material after Midterm 2 below):
1. What is general equilibrium theory? How does it compare with partial equilibrium models?
2. What did Walras contribute to general equilibrium theory? What does this imply about how values are determined, i.e. the direction of causality between input prices and output prices?
3. What are some of the problems associated with general equilibrium theory?
4. Give an overview of how the theory of gluts and the need for governments to intervene to maintain full employment starting with Malthus and Ricardo, continuing through the neoclassical economists, and ending with the contributions of Keynes.
Additional Reading mentioned in class: The Theory of Moral Neuroscience
Leon Walras
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