Abstract
In Chapter 3 of the General Theory, Keynes sketches out what he calls the essence of the General Theory of Employment. He introduces the Keynesian expenditure-based model, the aggregate demand curve and also his aggregate supply function, a concept which spawned much debate among Post-Keynesian economists but which was, for a long time, virtually ignored in mainstream macroeconomics. He sets out the Savings=Investment version of Say’s Law and outlines how an economy can settle into an equilibrium at less than full employment.
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