Question: What does the Keynesian model predict about the cyclical behavior of average labour productivity? How does the idea of labour hoarding help bring the prediction

What does the Keynesian model predict about the cyclical behavior of average labour productivity? How does the idea of labour hoarding help bring the prediction of the model into conformity with the business cycle facts?

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The Keynesian theory assumes that demand shocks cause most cyclical fluctuations This means that dur... View full answer

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