. How can the Keynesian model be correct? According to Keynes, falling income, unemployment, and bad times...

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. "How can the Keynesian model be correct? According to Keynes, falling income, unemployment, and bad times result because people have so much income that they fail to spend enough to buy all of the goods produced. Pa1adoxically, rising income and good times result because people are reducing their savings and spending more than they are making. This doesn't make sense." Explain why you either agree or disagree with this view.

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Macroeconomics Private And Public Choice

ISBN: 9780123110701

2nd Edition

Authors: James D Gwartney; Richard Stroup; A H Studenmund

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