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Unformatted text preview: A , as was found in the algebraic determination of the level of equilibrium real GDP. Graphical illustration of the Keynesian theory. The Keynesian theory of the determination of equilibrium output and prices makes use of both the income-expenditure model and the aggregate demand-aggregate supply model, as shown in Figure 2 . Figure 2 The Keynesian income-expenditure approach and aggregate demand and supply...
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This note was uploaded on 11/18/2011 for the course ECO 1310 taught by Professor Staff during the Fall '10 term at Texas State.
- Fall '10
- National Income