-Based on the Keynesian cross diagram above,at short-run equilibrium output,autonomous planned aggregate expenditure equals _________ and induced planned aggregate expenditure equals ________.

Question

Quizplus · Accepted Answer

In the Keynesian cross diagram, short-run equilibrium output occurs where planned aggregate expenditure equals actual output. Autonomous planned aggregate expenditure is the part of expenditure that does not depend on the level of income, while induced planned aggregate expenditure depends on income. Given the options, 500 is the autonomous expenditure, and 4,500 is the induced expenditure, summing to a total of 5,000, which matches the equilibrium output.

-Based on the Keynesian Cross Diagram Above,at Short-Run Equilibrium Output,autonomous