Suppose that recent favorable economic indicators have made households more optimistic about the future and less worried about saving. Identify how the variables below will changes according to each macroeconomic model (?+? for an increase, ?0? for no change, or ?.? For a decrease).

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Keynesian model: Consumer spending: 0 Neoclassical model: Consumer spending: 000 +01 - Unemployment: 0 Unemployment: 00 0 Level of prices: 0 - Level of prices: Keynesian model: Consumer spending: 0 Neoclassical model: Consumer spending: 000 +01 - Unemployment: 0 Unemployment: 00 0 Level of prices: 0 - Level of prices:

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Keynesian economics are the various theories about how output is influenced in the shortrun due to a ... View the full answer