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Y y2 y1 income - PowerPoint PPT Presentation

AGGREGATE DEMAND: THE SIMPLE KEYNESIAN MODEL

AGGREGATE DEMAND: THE SIMPLE KEYNESIAN MODEL. STUDY UNITS 7 & 8. STUDY OBJECTIVES. Identify the relationship between income, production and spending. Explain the assumptions of the Keynesian model. Define, explain and graphically represent the consumption function.

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Y y2 y1 income - PowerPoint PPT Presentation

AGGREGATE DEMAND: THE SIMPLE KEYNESIAN MODEL