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Understanding Fiscal Policy and Equilibrium by Vivek Mishra is a document available to read on EtoBox.

1) The Keynesian model looks at the relationship between planned aggregate expenditure and output or income, where equilibrium is reached when planned expenditure equals actual output. 2) In a closed economy, planned expenditure comes from consumption (C) and investment (I). C depends on autonomous consumption and income, while I depends on future outlook. 3) The government can influence equilibrium income and output through fiscal policy such as changing autonomous expenditure like government spending (

Author

Vivek Mishra

Language

EN