Q. What is Keynesian model?

Keynesian model is slightly more complicated than the classic model and it is developed in four stages by analysing four separate models. Every model has, though, a value in itself. The models we will consider and the key characteristics of each are: 

• Cross model: W, P and R are constant (and exogenous).
• IS-LM model: W, P are constant and R is endogenous.
• AS-AD model: W is constant, P and R are endogenous.
• The full Keynesian model: W is exogenous (but not constant), P and R are endogenous.

Once we have developed full Keynesian model, we will combine it with clasmodel that will lead to the neoclassical synthesis.