Why does the classical model perform better than the Keynesian model in explaining the business cycle fact

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Why does the classical model perform better than the Keynesian model in explaining the business cycle fact of procyclical labor productivity? How can the concept of labor hoarding help Keynesians improve their model's prediction?

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Macroeconomics

ISBN: 9780137876037

11th Edition

Authors: Andrew B Abel

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Question Posted: Apr 01, 2024 06:00 AM

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Why does the classical model perform better than the Keynesian model in explaining the business cycle fact

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Macroeconomics

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