In the income-expenditure model, equilibrium output is the level of output at which the 45-degree line intersects the planned expenditures line. Explain why this output level is an equilibrium level. Illustrate your answer with a diagram of the income-expenditure model.

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The Answer of In the income-expenditure model, equilibrium output is the level of output at which the 45-degree line intersects the planned expenditures line. Explain why this output level is an equilibrium level. Illustrate your answer with a diagram of the income-expenditure model.

In the Income-Expenditure Model, Equilibrium Output Is the Level of Output