economics question?

0 ⤊

Guys, please help for the True/False/Uncertain statement:
Keynesian models are only appropiate when actual output is less than potential output.

Cheers!

2007-02-25 09:08:32 · 2 answers · asked by luzsdavis 1 in Social Science ➔ Economics

2 answers

Actual output must always be less than potential output. Therefore if Keynesian models are ever appropriate it can only be when actual output is less than potential output.

2007-02-25 10:25:15 · answer #1 · answered by anonimous 6 · 0⤊ 0⤋

True. Keynes say government has to buy mroe stuff from firms to increase output (and hence employment)

2007-02-26 16:50:12 · answer #2 · answered by Anonymous · 0⤊ 0⤋