That was the basic understanding of the Keynesian model as crystallized by John Hicks, Franco Modigliani, and others, in which it was easy to add detail to the demand functions for private-sector consumption, C; for investment, I; for government spending, G; and for net exports.
Survey-based data also revealed that the probability assigned to inflation outcomes being above our definition of price stability at long horizons was rising [see Chart 3a].