<P> Macroeconomics , at least in its modern form , began with the publication of John Maynard Keynes 's General Theory of Employment , Interest and Money . When the Great Depression struck , classical economists had difficulty explaining how goods could go unsold and workers could be left unemployed . In classical theory , prices and wages would drop until the market cleared , and all goods and labor were sold . Keynes offered a new theory of economics that explained why markets might not clear , which would evolve ( later in the 20th century ) into a group of macroeconomic schools of thought known as Keynesian economics -- also called Keynesianism or Keynesian theory . </P>
<P> Macroeconomics , at least in its modern form , began with the publication of John Maynard Keynes 's General Theory of Employment , Interest and Money . When the Great Depression struck , classical economists had difficulty explaining how goods could go unsold and workers could be left unemployed . In classical theory , prices and wages would drop until the market cleared , and all goods and labor were sold . Keynes offered a new theory of economics that explained why markets might not clear , which would evolve ( later in the 20th century ) into a group of macroeconomic schools of thought known as Keynesian economics -- also called Keynesianism or Keynesian theory . </P>
the book that is the basis for modern macroeconomic theory is
the book that is the basis for modern macroeconomic theory is
General Theory of Employment , Interest and Money
General Theory of Employment , Interest and Money