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Complete Keynesian model determines consumption, employment, investment, national income and interest rate. This model assumes the wage rate to be rigid. It is considered to be short run static macro model. It shows how the equilibrium between aggregate production and income is attained. It is presented by the intersection between a 45 degree line and the aggregate expenditure curve. This model is involved in explaining important concepts including fiscal policy, monetary policy business cycle, and multipliers. It basically shows functioning of the fiscal policy in order to stabilize the business cycle.
Different concepts of Keynesian model, reason for assuming the rigidity of wage rate, interaction between the two curves, criticism of the model and why AD-AS model is preferred over Keynesian model have all been discussed by The Complete Keynesian Model Homework Help experts. Sometimes even though you attend all the classes and lectures one might not understand certain topics. Here we bring you special assistance at myhomeworkhelp.com.
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