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Terms in this set (8) - Inflation will happen when demand far outweighs the supply. - British economist John Maynard Keynes forwarded this theory. - Inflation is the result of a mismanagement of the economy by the federal government. - Inflation is the product of an increase in wage rate and an increase in the cost of natural resources used ...Study with Quizlet and memorize flashcards containing terms like 1. John Maynard Keynes created the aggregate expenditures model based primarily on what historical event? A. Bank panic of 1907 B. Great Depression of the 1930s C. Spectacular economic growth during World War II D. Economic expansion of the 1920s, 2. The aggregate …

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