The basic Keynesian model assumes that,in the _______,the economy's potential output is ________.

Question

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The basic Keynesian model assumes that in the short run, the potential output of the economy is constant. This means that the level of output that can be produced by the economy in the short run is fixed, and not subject to change based on changes in factors like technology or the availability of resources. Additionally, the basic Keynesian model assumes that there are short-term frictions and rigidities in the economy that can prevent it from operating at full potential output in the short run.

The Basic Keynesian Model Assumes That,in the _______,The Economy's Potential