Paper Summary:

This paper discusses how prior to the Keynesian revolution, many economists and politicians viewed economics from a "micro" perspective. They saw factors such as unemployment, interest rates, profit and loss as related to individual organizations and the impact of individual transactions. It looks at how in modern times, the idea of macroeconomics is much more widespread and the impact of economic endeavors is viewed as part of an economic whole, or national/global approach. It analyzes how part of the credit for this much more diverse and broad view is due to the efforts of John Maynard Keynes, through his publications and the "Keynesian Revolution." It shows how John Maynard Keynes was a pioneer of his time, revolutionizing economic thought and introducing the idea of macroeconomics.

Outline
Introduction
History of Economic Theory
The Keynesian Revolution: A Turning Point
Key Concepts Related to Keynesian Theory
General Ideas Related to Economic Theory
Criticisms of Keynesian Theory
Responses to Criticisms
The Keynesian Revolution Revisited
The Significance of the Revolution
Analysis and Summary of Keynesian Revolution and Criticisms of John Maynard Keynes Model for Economy

From the Paper:

"Keynes felt that unemployment was instead caused by a lack of demand for a particular production or services, rather than imbalance within the labor market. This makes perfect sense to modern day economic theorists, but was a huge leap at the time proposed.
Keynes argued also that there was no reason for recessions and depressions to occur. Keynes assesses that prevention of a decline in the economy relied on maintaining a balance of income and expenditures. Critics during the 1930's still felt adamantly that unemployment could only be explained by wage rates.
Some political theorists and economists such as Friedman and like- minded economists, argued that increasing demand for productions and services would only affect employment if the wage rates fell in accordance with falling prices. Others such as David Lilien argued that "sectoral shifts" accounted for half of cyclical unemployment that were have been thought to be caused by shifts in demand (Galbraith)."

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