The basic Keynesian model assumes that,in the _______,the economy's potential output is ________.Potential output depends only on available resources (labour force,capital stock,and the state of technology)which change little in the ________.

Question

Quizplus · Accepted Answer

In the short run, the Keynesian model assumes that potential output is constant, and changes in resources and technology, which affect potential output, occur over the long run.

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