1.4 Explain the following using the figure below. a According to Keynes, aggregate demand may be insufficient...
Question:
1.4 Explain the following using the figure below.
a According to Keynes, aggregate demand may be insufficient to bring about the full-employment output level (or Natural Real GDP).
b A decrease in consumption (due to increased saving)
is not matched by an increase in investment spending.
Transcribed Image Text:
P AS 0 2 13 QN AD2 AD Q
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