Asked by James Stupin on May 06, 2024
Verified
According to Keynes,there are three possibilities with respect to equilibrium GDP and full employment GDP.
(1)___________________________________________________ (2)___________________________________________________ and
(3)__________________________________________________.
Equilibrium GDP
The level of Gross Domestic Product where aggregate supply equals aggregate demand within an economy.
Full Employment GDP
The output level of an economy when all available resources are employed efficiently, corresponding to a situation with no cyclical unemployment.
- Compare and contrast Keynesian and Classical theories of employment.
Verified Answer
IF
Isabella FerrarisMay 09, 2024
Final Answer :
full employment GDP is greater than equilibrium GDP;equilibrium GDP is gr eater than full employment GDP;full employment GDP = equilibrium GDP
Learning Objectives
- Compare and contrast Keynesian and Classical theories of employment.