Abstract
The same set of variables is used as in the classical model of Chapter 6: money and real income (Y and y), employment (n), money supply (M), the interest rate (r), money and real wages (W and w), and the price level (P). There are three markets (for the product, for money, and for labour); and there are demand and supply to specify on each. However, the money supply is again taken as given, leaving only five functions to be specified for planned magnitudes : saving and investment functions, a liquidity function, a production function, and a labour supply.
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© 1967 R. G. D. Allen
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Allen, R.G.D. (1967). Keynesian Models. In: Macro-Economic Theory. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-81541-8_7
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DOI: https://doi.org/10.1007/978-1-349-81541-8_7
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-81543-2
Online ISBN: 978-1-349-81541-8
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