Macroeconomics needs to deal with aggregate quantities such as Keynesian model is a functional relationship between consumption and national income : C = C ( " Y " ).
22.
The mainstream AS-AD model contains both a long-run aggregate supply curve ( LRAS ) and a short-run aggregate supply ( SRAS ) curve essentially combining the classical and Keynesian models.
23.
Estimated minimum wage effects on employment from a meta-study of 64 studies showed insignificant employment effect ( both practically and statistically ) from the minimum-wage raises supporting the Keynesian model.
24.
In particular he has fruitfully incorporated into the post-Keynesian model of distribution and accumulation the well-known life-cycle theory of Ando-Brumberg & Modigliani, within an overlapping-generations model, and with a strong bequest motive.
25.
In a standard Keynesian model, the MPC is less than the average propensity to consume ( APC ) because in the short-run some ( autonomous ) consumption does not change with income.
26.
The " stagflation " of the 1970s ( combining high inflation and high unemployment ) was impossible according to Keynesian models, but was predicted by Friedman, giving his approach credibility among the experts.
27.
Even in Keynesian models, a small open economy can, in the long run, restore full employment through deflation and internal devaluation; the point, however, is that it involves many years of suffering ".
28.
The essence of supply-side theory took form in the'70s as Mundell, joined by his student Arthur Laffer, pondered how the combination of stagnant growth and hyperinflation defied the Keynesian model of demand-side economics.
29.
In previous Keynesian models, such as the IS LM model it had simply been assumed that wages and / or prices were fixed in the short-run so that money could affect GDP and employment.
30.
Modern New Keynesian models address this issue by assuming that the labor market is segmented, so that the expansion in employment by a given firm does not lead to lower profits for the other firms.
