Problem
The current GDP of Country Y is $9,000 but the full employment GDP is considered to be $9, 400. Country Y has a marginal propensity to consume of 0.95. Required: a. Country Y would like to achieve full employment GDP. Explain how the economy would achieve full employment according to classical economists. (Specifically identify what changes would need to take place). b. Country Y would like to achieve full employment GDP. Explain how the economy would achieve full employment according to Keynesian economists. (Specifically identify what changes would need to take place). c. Country Y would like to achieve full employment GDP. Explain how the economy would achieve full employment according to monetary policy. (Specifically identify what changes would need to take place).