‘Monetary policy is most eff ective in the classical range and ineff ective in the Keynesian range’. Explain. Discuss the simultaneous equilibrium in the goods and the money markets in a three sector...

‘Monetary policy is most eff ective in the classical range and ineff ective in the Keynesian range’. Explain.

Discuss the simultaneous equilibrium in the goods and the money markets in a three sector economy by fi rst discussing in brief the equilibrium in the goods market and the equilibrium in the money market.