What is the Keynesian model of income determination?
i hate economics so much! got exam this saturday… i would have to assume that keyne’s model of income is related to wages and aggregate supply’s equilibrium with aggregate demand… so you have real wages on the y axis of the graph and labour on the x axis of the graph… once you have an equilibrium with the demand for labour and supply of labour you will have a figure for income… remember in the keynesian model of income the supplier writes up a contract to fix wages regardless of output (short term agreement) hope that help…
