When Investment doesnt equal savings?
How come in full employment savings are equal t investment? How does inflationary or recessionary periods demolish S=I equality?
- OiyLv 62 months ago
In the Keynesian model,there are two definitions. Y=c+s+I+ im and Y=c+I+g+x. Only in equilibrium, it is y=y. And so is I=S. It is coincide with the classical model which is referred to the loanable fund theory.