Question 2: a. Discuss and graphically depict Keynes’s three conjectures about the consumption function. b. Present and explain Keynesian’s consumption function that was created from these conjectures c. What is meant by "autonomous consumption"? )

Question 2: a. Discuss and graphically depict Keynes’s three conjectures about the consumption function. b. Present and explain Keynesian’s consumption function that was created from these conjectures c. What is meant by "autonomous consumption"? )

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter10: Keynesian Macroeconomics And Economic Instability: A Critique Of The Self Regulating Economy

Section: Chapter Questions

Problem 7QP

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Question 2:

a. Discuss and graphically depict Keynes’s three conjectures about the consumption function.

b. Present and explain Keynesian’s consumption function that was created from these conjectures

c. What is meant by "autonomous consumption"? )

d. Explain the consumption puzzle?

e. How does the Life-Cycle Hypothesis resolve the puzzle?

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