In the Keynesian cross diagram, the ______ line relates planned aggregate expenditure to output and the ______ line represents the condition that planned aggregate expenditure equals short-run equilibrium output.
A) consumption function; 45°
B) 45°; consumption function
C) expenditure; 45°
D) 45°; expenditure

Question

Quizplus · Accepted Answer

In the Keynesian cross diagram, the expenditure line relates planned aggregate expenditure to output, and the 45° line represents the condition that planned aggregate expenditure equals short-run equilibrium output.

In the Keynesian Cross Diagram, the ______ Line Relates Planned