Keynesian model

Keynesian model is a model derived from the ideas of Keynes's General Theory; a model based on the assumptions that wages and prices do not adjust to clear markets and that aggregate demand determines the economy's output and employment. (Cf. classical model.)

Definition

According to Macroeconomics by Mankiw (7th edition),

Keynesian model. A model derived from the ideas of Keynes's General Theory; a model based on the assumptions that wages and prices do not adjust to clear markets and that aggregate demand determines the economy's output and employment. (Cf. classical model.)