GATE (Graduate Aptitude Test in Engineering) Economics (XH-C1) Macroeconomics-Theories of Consumption Study Material (Page 19 of 19)

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Model of Samuelson: Explanation of the Model

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Model of Samuelson

Explanation of the Model

The different combinations of α and b give rise to fluctuations in business cycles as shown in Figure-1 (Business cycles and combinations of parameters a and b)

Explanation of the Model
  • In the above figure, the areas A, B, C, and D indicates differe…

… (202 more words, 34 figures) …

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