Why is the circular-flow diagram of the economy an only partially correct conception of the multiplier model? How do mechanistic models differ from interpretive models? If the multiplier model...

Why is the circular-flow diagram of the economy an only partially correct conception of the multiplier model? How do mechanistic models differ from interpretive models? If the multiplier model multiplies the effect of initial changes in autonomous expenditures, how can it also be a model of dampened fluctuations?

May 18, 2022
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