Explain fully the role played by unplanned investment in inventories in determining equilibrium in the Keynesian model.

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Explain fully the role played by unplanned investment in inventories in determining equilibrium in the Keynesian model. Use the examples of AD > GDP and AD < GDP to illustrate your answer.

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Bond Markets Analysis and Strategies

ISBN: 978-0133796773

9th edition

Authors: Frank J.Fabozzi

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Posted Date: Feb 15, 2019 09:11 AM

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Explain fully the role played by unplanned investment in inventories in determining equilibrium in the Keynesian model. Use the examples of AD > GDP and AD < GDP to illustrate your answer.
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Explain fully the role played by unplanned investment in inventories in determining equilibrium in the Keynesian model.

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In any economy equilibrium is established when the market demand is equal to the market supply In su... View the full answer

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