The 45-degree line represents the set of points where aggregate expenditures are equal to disposable income.
Correct Answer:
Verified
Q100: Suppose full employment real GDP is $12
Q101: The 45-degree line in the Keynesian model
Q102: Which statement is TRUE about differences in
Q103: Classical economists expect the government to promote
Q104: (Table) The table shows data on consumption
Q106: If the multiplier is 2 and investment
Q107: What occurs when spending is above the
Q108: Equilibrium income is reached when injections equal
Q109: Along the 45-degree line in the graph
Q110: The larger a country's marginal propensity to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents