A New Dimension in Adjustments to the Keynesian Models When Wages Are No Longer Constant Homework Help!
Keynesian theory is developed by British economist John Maynard Keynes. This theory says for an economy to be stable and to grow, government intervention is required. This was developed during the great depression of 1930s to attempt to understand it. According to Keynes the government should increase its expenditure and reduce taxes to pull the economy out of depression. But in modern era many new adjustments have been made to this theory and if you are stuck with adjustments to the Keynesian models when wages are no longer constant assignment help, our teachers who are experienced and qualified can really make the theories easy for you to understand.
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Criticism of Keynesian Model
The main criticism of Keynesian model is that it assumes a constant relation between income and employment. It also assumes that wages will remain constant for a very long period. It ignores the factors of basic importance and can only be true for a very short period of time. But Keynesian tries to use this approach over long period of time for the basis of predicting future employment. It is not possible for the consumption function and the level of investment to remain constant either. This theory gives undue important to long period.
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