3. Using diagrams and examples, critically discuss and compare the strengths and limitations of the following two models: a. The Keynesian-cross model with autonomous investment and a specified full-employment level of output. b. The IS-LM model with a risk premium in the investment function.

3. Using diagrams and examples, critically discuss and compare the strengths and limitations of the following two models: a. The Keynesian-cross model with autonomous investment and a specified full-employment level of output. b. The IS-LM model with a risk premium in the investment function.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

3. Using diagrams and examples, critically discuss and compare the strengths
and limitations of the following two models:
a. The Keynesian-cross model with autonomous investment and a
specified full-employment level of output.
b. The IS-LM model with a risk premium in the investment function.

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