1.4 Explain the following using the figure below. a According to Keynes, aggregate demand may be insufficient...

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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.

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Economics

ISBN: 978-0324538014

8th Edition

Authors: Roger A Arnold

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