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level of output and employment in the economy as being determined by Aggregate Demand. Aggregate demand is the total demand for goods and services in the economy. In neoclassical theory, adjustments in prices, in particular wage and interest rates, would automatically make aggregate demand tend to the full employment level. Keynes' analysis suggested that these tendencies would be weak or non-existent. In the neoclassical theory, two elements of an economic system were believed to produce a state of full employment. First, the push and pull of supply and demand set the price of goods, and the constant shifting of price allowed Kenneth Thomson is the richest person in Canada, with a net worth of US$14 billion, and the 13th richest person in the world (according to Forbes [1]). He is the son of Roy Thomson, the founder of Thomson Corp., a Canadian newspaper chain. Kenneth Thomson succeeded his father as chair of Thomson Corp. in 1976, and was, in turn, succeeded as Chair by his son David 2002. Thomson is a well-known art collector. He holds the record buying for the most expensive picture ever sold in Canada: Paul Kane's Scene from the Northwest, for which he paid Can $5.06 million in |
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