Question

What is the condition of equilibrium income determination in simple Keynesian model ?​

Answer 1

Answer:

$\huge \mapsto \boxed{ \rm \red{Question}}$

What is the condition of equilibrium income determination in simple Keynesian model ?

______________________________________________________

$\huge \mapsto \boxed{ \rm \purple{ \: Answer \: }}$

______________________________________________________

Classical economists believed that supply creates its own demand while Keynes argued that demand creates its own supply. The central proposition of the simple Keynesian model (the SKM) is that national output (income) reaches its equilibrium value when total output is equal to aggregate demand.

______________________________________________________

$\large \mapsto \boxed{ \rm \green{ \: 10 \: thanks \: = \: I \: will \: inbox \: u \: }}$

Answer 2

Hyyy....

• According to Keynesian model, the equilibrium level of national income is determined at a point where the aggregate demand curve intersects the aggregate supply curve. By definition, output equals income on each point of aggregate supply curve. The determination of the level of aggregate income.

@LittleButterfly ~♡~