In the Keynesian cross model, equilibrium output rises if _____ rise(s).
A) government spending
B) the mpc
C) net exports
D) all of the above

Question

Quizplus · Accepted Answer

In the Keynesian cross model, equilibrium output increases if government spending, the marginal propensity to consume (mpc), or net exports rise. Each of these factors can lead to an increase in aggregate demand, which in turn raises equilibrium output.

In the Keynesian Cross Model, Equilibrium Output Rises If _____