Specify, in detail, the various components that put together, generate business cycle according to michal kalecki.
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Michal Kalecki's business model mainly focuses on the internal strengths of the economy. This is done by
Making investment decisions according to future anticipated aggregate profitability. And the profitability in new businesses estimated in accordance to the current gross profitability of a similar business.
Investment process were defined where order placed that is the decision to invest, production of capital goods and actual investment were marked as the three different stages.
Thus he believed that the balance of capital and aggregate profitability of capital fluctuates and these together affect the investment decision.
Making investment decisions according to future anticipated aggregate profitability. And the profitability in new businesses estimated in accordance to the current gross profitability of a similar business.
Investment process were defined where order placed that is the decision to invest, production of capital goods and actual investment were marked as the three different stages.
Thus he believed that the balance of capital and aggregate profitability of capital fluctuates and these together affect the investment decision.
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