Question
This simple Keynesian result relies on prices not changing when Y increases. One reason prices wouldn't change is that input costs don't change. Explain why
This simple Keynesian result relies on prices not changing when Y
increases. One reason prices wouldn't change is that input costs don't change. Explain why an
increase in GDP might not lead to increased costs for producers. Hint: The economy
is operating inside the PPF.
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Macroeconomics
Authors: David Colander
8th edition
978-0078004407, 78004403, 978-0077247171, 77247175, 978-0077307110
