Keynesian Economics Is Hot Again
Macroeconomics novice here.<p>From what I can tell, these two economic theories rely on competing assumptions. Keynesian economics is the theory that results from assuming the size[0] of an economy will closely follow the amount of aggregate demand. Neoclassical economics is the theory that results from assuming the size of an economy will closely follow the amount of aggregate supply.<p>In microeconomics there is no such duality. Rather, there is an understanding that supply and demand are each elastic with respect to one another. We measure this and reason amount markets while thinking about two explicit quantities: the elasticity of demand and the elasticity of supply. The two numbers (and the ratio between them) will tell you a lot about the effects that various conditions will have on a market.<p>My question is: Is there a corresponding concept of e.g. &quot;the elasticity of aggregate demand&quot; in macroeconomic theory?<p>If so, could articles like this be made more objective by providing concrete measurements of this figure on some time scale, rather than subjectively stating things like &quot;Keynesian economics is hot again&quot;?<p>If not, what prevents or complicates the existence of such a quantity?<p>[0] Please correct me if I am misusing this or any other economic terms and concepts