Questions We Can Help You To Answer

Paper instructions:

Answer the following questions about the views of Michał Kalecki.

(a) Explain what does the following saying mean: “capitalists earn what they spend while workers spend what they earn”? Why?
(b) What are the obstacles to achieve full employment according to Kalecki?

(Note that if you are planning to use a model or part of it, please make sure that: (i) you do use only the relevant part/aspect of the model; (i) explain what it says and why without resorting to the assumption that I will get it. Do not waste the limited space you have with writing down long equations etc. Use your own words to explain and demonstrate your understanding).