In the Keynesian model,when the economy is not in long-run equilibrium,then the short-run equilibrium point is not on which curve?
A)SRAS
B)FE
C)IS
D)LM

Question

Quizplus · Accepted Answer

In the Keynesian model, the short-run equilibrium point is determined by the intersection of the IS and LM curves, and it may not necessarily coincide with the FE (full employment) curve, which represents long-run equilibrium. The SRAS curve is not relevant in determining short-run equilibrium in the Keynesian model.

In the Keynesian Model,when the Economy Is Not in Long-Run