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9. Keynesian Macroeconomics in the AD-AS Model

9. Keynesian Macroeconomics in the AD-AS Model. Abel, Bernanke and Croushore (chapter 11). Syllabus Outline. Introduction to Macroeconomics The measurement and structure of the national economy Goods market equilibrium: the IS curve Money market equilibrium: the LM curve The IS-LM model

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Chapter 11 Keynesianism: The Macroeconomics of Wage and Price Rigidity

Chapter 11 Keynesianism: The Macroeconomics of Wage and Price Rigidity. I. Real-Wage Rigidity (Sec. 11.1). A) Wage rigidity is important in explaining unemployment 1. In the classical model, unemployment is due to mismatches 2. Keynesians :recessions lead to substantial cyclical employment

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1.01k views • 15 slides

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Cyclical employment - PowerPoint PPT Presentation

9. Keynesian Macroeconomics in the AD-AS Model

Chapter 11 Keynesianism: The Macroeconomics of Wage and Price Rigidity