demand and supply

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The Keynesian theorists believe that the changes in the aggregate demand whether it is unanticipated or anticipated, have their impact on the real employment and output, not on the prices. This concept has been portrayed in the Philippines curves that indicate the inflation changing very slowly whenever the unemployment changes. They believe that the long run will eventually last long enough to matter in the end (King, 1993). The Keynesian theory of economics was named after the famous British economist John Maynard Keynes. John Maynard Keynes lived between the years 1883 to 1946. His ideas were reported to have been based on the circular flow of money. This subsequently gave rise to several interventionist economic policies during the period of the Great Depression. According to the school of thought, the spending of the person A contributes to the earning of the person B. In this case, when person A purchases services or goods from person B, and consequently, person B goes ahead to spend his money and thus contributing to the earnings of person C. Thus; Keynes believed that this circular system of the exchange of money will enable the economy function normally (King, 1993). This firm has not employed the method of outsourcing but rather has extensively incorporated mergers to increase its competitiveness. In its quest to expand Conoco merged with the Philips Company in the year 2001 with the deal being completed in 2002. The merger of Conoco and Phillips to form ConocoPhillips came at a time when intense rivalry in the industry was high. In this case, rival companies merged to consolidate their positions within the market. ConocoPhillips merger was ranked as the sixth largest in Energy Company in the world by then. Three years ... ... middle of paper ... ...nvestment requirements of business entities. This enables the company and its shareholder to determine the amount of exposure that is required against exploration and production. Even though under the current volatility of commodity prices, mergers and acquisition can enhance the future growth of the company through allowing it to access the bundle of resources. Works Cited Abubakar, IA n.d. ConocoPhillips and its acquisition of Burlington Resources: the strategic fit? Viewed on 07 March 2014 from http://www.dundee.ac.uk/cepmlp/gateway/files.php?file=cepmlp_car14_67_419431265.pdf ConocoPhillips (2002), Conoco Inc. History. Viewed 07 March 2014 from http://www.conocophillips.com/EN/about/who_we_are/history/conoco/Pages/index.aspx King, R G. (1993), “Will the New Keynesian Macroeconomics Resurrect the IS-LM Model?" Journal of Economic Perspectives 7, no. 1 67-82.

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