Consider two standard Keynesian models. In Model 1, there are two types of consumers, Type A, who have low marginal propensities to consume, and Type B, who have high marginal propensities to consume. In Model 2, there are only Type A consumers. Then, a decrease in the exogenous taxes would lead to higher output in Model 2 than in Model 1
Consider two standard Keynesian models. In Model 1, there are two types of consumers, Type A, who have low marginal propensities to consume, and Type B, who have high marginal propensities to consume. In Model 2, there are only Type A consumers. Then, a decrease in the exogenous taxes would lead to higher output in Model 2 than in Model 1
Chapter18: Debates In Macroeconomics Over The Rolse And Effects Of Government
Section18.10: Demand-side And Supply-side Views Of The Economy And Government Tools For Changing Real Gdp
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Consider two standard Keynesian models. In Model 1, there are two types of consumers, Type A,
who have low marginal propensities to consume, and Type B, who have high marginal
propensities to consume. In Model 2, there are only Type A consumers. Then, a decrease in the
exogenous taxes would lead to higher output in Model 2 than in Model 1
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