0
In the monetarist model, a difference between desired spending and income is caused by either an excess demand for money (MD > MS) or an excess supply of money (MS > MD). An excess demand for money reduces desired spending, and an excess supply increases it. In the Keynesian model, changes in desired spending (particularly in desired investment spending) cause the difference.
What else can I help you with?
Difference between Keynesian and new Keynesian school of thought?
New Keynesians account for time in their models
What is the similarities between classical and Keynesian school of thoughts in economics?
Keynesians say that government should interven in economic activities where as classical say not too
What is the key difference between the classical and Keynesian aggregate supply functions?
Classical Aggregate Supply function is vertical whereas the Keynesian Aggregate Supply function is positively sloped.
What is the major difference between the classical model and the Keynesian model?
The major difference between the classical model and the Keynesian model is their approach to government intervention in the economy. The classical model believes in a hands-off approach, where the economy will naturally correct itself, while the Keynesian model advocates for government intervention to stimulate economic growth and stabilize fluctuations.
Difference between keynesian model and AD-AS model?
Keynesian model is able to show how leakages and injections can influence the economy. AD-AS model is able to show changes in prices (inflation).
What is the difference between Keynesian and classical economic theories?
Keynesian economic theory focuses on government intervention to manage economic fluctuations, while classical economic theory emphasizes a hands-off approach with minimal government involvement in the economy.
An important difference between government spending during the Depression and during world war 2 was that?
A
What is the 45 degree line in economics?
Its a line lol A guideline used in Keynesian economics in conjunction with the consumption line (to derive saving) and the aggregate expenditures line (to identify Keynesian equilibrium). This guideline forms a 45-degree angle with both the horizontal income axis and the vertical consumption expenditure (or aggregate expenditures) axis in the Keynesian graphical analysis.
Different between consumption and consumption function?
The difference between consumption and consumption function is that the consumption function is a formula that measures consumer spending.
What is the difference between capital income and capital expenditure?
Income is money coming in, expenditure is money going out (spending).
What is the difference between cheap and frugal?
cheap is when something is not expensive. frugal is to be wise and wary of over spending on something.
What is the difference between uncontrollable and controllable spending?
Controllable spending is the type of spending that you decide to do. Uncontrollable spending is the type of spending that you have no choice about. Budgets are typically dominated by uncontrollable spending.
