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April 20, 2024, 04:09:13 am

Author Topic: Business confidence - Keynesian model  (Read 1200 times)  Share 

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chops_07

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Business confidence - Keynesian model
« on: September 04, 2010, 10:11:13 pm »
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Hey there;

In a four sector Keynesian model. If there is a fall in business confidence - will the only effect by a decrease in planned investments?
Thus PAE (Cbar - cTbar + Planned Ibar + Gbar + Xbar +kY) and planned injections (planned Ibar + Gbar + Xbar) will be shifted down leading to a new equilibrium.

Am I correct?

Thank you.
2010: