User:Nick Gardner /Sandbox
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The Keynesian equation system
Let
y = national income
The demand for money
- M = lPy + L(y)
The consumption function
- s = s(y)
The production function
- y = y(n)
The labour market
- dy/dn = W/P
Investment
- i = i(r)
Savings
- s = i
Sticky wages
- W =Wo,