The following figure illustrates the Keynesian model of equilibrium in the macroeconomy.

-The most appropriate name for the line running at a 45 degree angle through the graph would be the:
A) total output line.
B) total spending line.
C) injections and leakages line.
D) spending equals output line.

Question

The following figure illustrates the Keynesian model of equilibrium in the macroeconomy.
 
-The most appropriate name for the line running at a 45 degree angle through the graph would be the:
A) total output line. 
B) total spending line. 
C) injections and leakages line. 
D) spending equals output line.

Quizplus · Accepted Answer

A line running at a 45-degree angle through a graph in the context of economics typically represents the point where spending equals output. This is because at every point along this line, the value on the y-axis (which could represent spending) is equal to the value on the x-axis (which could represent output), indicating a situation where all spending is matched by an equivalent amount of output.

The Following Figure Illustrates the Keynesian Model of Equilibrium in the Macroeconomy