In the Keynesian Cross model, which of the following variables is assumed to be constant?
A) Planned expenditure.
B) Prices.
C) Investment.
D) Consumption.

Question

Quizplus · Accepted Answer

In the Keynesian Cross model, prices are assumed to be constant. This simplification allows the model to focus on the relationship between income, output, and expenditure without the complicating factor of changing price levels.

In the Keynesian Cross Model, Which of the Following Variables