Explain the differences between the simple Keynesian
(demand-side) model and the classical (supply side) model with
respect to fiscal policy, what can change Y (Real GDP), and any
other things that you think are relevant.
To answer this question correctly, you would need to:
A) Explain why fiscal policy does not change the Yd curve in the
classical model but does in the
simple Keynesian model.
B) Explain that in the classical model Y only changes if Ys
changes.
C)...