Put the idea of Keynesian unemployment described at the end of Section 3.D into a properly specified

Put the idea of Keynesian unemployment described at the
end of Section 3.D into a properly specified game, and show the multiple
equilibria in a diagram. Show the level of production (national product) on the
vertical axis as a function of a measure of the level of demand (national
income) on the horizontal axis. Equilibrium is reached when national product
equals national income—that is, when the function relating the two cuts the 458
line. For what shapes of the function can there be multiple equilibria? Why
might you expect such shapes in reality? Suppose that income increases when
current production exceeds current income, and that income decreases when
current production is less than current income. In this dynamic process, which
equilibria are stable and which ones unstable?

Don't use plagiarized sources. Get Your Custom Essay on
Put the idea of Keynesian unemployment described at the end of Section 3.D into a properly specified
For as low as $7/Page
Order Essay

 

 

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *

*

*

*