Keynesian ADAS

• • Recession is when there is negative growth for 2 consecutive quarters.
• Keynesian ADAS

  
• • John Keynes opposed the 'classical' LRAS model by saying although full employment will be achieved, it takes time.
  • Argued there is no 'SRAS' & 'LRAS'
  • YFE is where the economy is at a 4% unemployment.
  • To achieve YFE the government must intervene.