Lec_7_keynesian_cross_model

Lec_7_keynesian_cross_model - EC 400 The Keynesian Cross...

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EC 400 1 The Keynesian Cross Model Part 1 The idea of macroeconomic Equilibrium 3 Macroeconomic Equilibrium Conditions 1. The amount of output being produced must equal the amount of output being purchased willingly. 3 Macroeconomic Equilibrium Conditions 1. The amount of output being produced must equal the amount of output being purchased willingly. 2 All financial assets in the economy must 2. All financial assets in the economy must be willingly held.
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EC 400 2 3 Macroeconomic Equilibrium Conditions 1. The amount of output being produced must equal the amount of output being purchased willingly. 2 All financial assets in the economy must 2. All financial assets in the economy must be willingly held. 3. All of the output being produced must be willingly produced. Keynesian Cross Model • The simplest macroeconomic model. Keynesian Cross Model • The simplest macroeconomic model. • Based on three assumptions
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EC 400 3 Keynesian Cross Model • The simplest macroeconomic model. • Based on three assumptions A. The existence of unemployed supplies of all factors of production. factors of production. Keynesian Cross Model • The simplest macroeconomic model. • Based on three assumptions A. The existence of unemployed supplies of all factors of production. factors of production. B. The general level of prices is fixed.
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This note was uploaded on 09/14/2009 for the course EC 400 taught by Professor Cover during the Spring '09 term at Alabama.

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Lec_7_keynesian_cross_model - EC 400 The Keynesian Cross...

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