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Unformatted text preview: 3. In a recession, prices do not always decrease, they may remain at the same level. Prices are downwardly inflexible. (Ücretler aşağı doğru her zaman esnek olmayabilir.) Simplifications When building the Keynesian Modal we assume that GDP=NI=DI. In order to equalize GDP, NI and DI, we have to assume the followings: a. A closed economy. b. There is no government expenditure. c. Savings are all personal. d. Depression is zero. e. Net foreign factor income is zero. Tools of the Aggregate Expenditure Modal Total output and employment level depend on aggregate expenditures. First expenditures increase, output is also increase and then employment is increase. Consumption and Saving...
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This note was uploaded on 01/01/2012 for the course MIS 132 taught by Professor Hasandag during the Spring '11 term at Kadir Has Üniversitesi.
- Spring '11