Consider the graphical representation of the Keynesian cross for a hypothetical country, where the planned aggregate spending line is graphed against the 45° line. Suppose that, in this country, there is an autonomous increase in aggregate spending of $20 billion. Show this change on the graph.

Consider the graphical representation of the Keynesian cross for a hypothetical country, where the planned aggregate spending line is graphed against the 45° line. Suppose that, in this country, there is an autonomous increase in aggregate spending of $20 billion. Show this change on the graph.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter14: Aggregate Demand And Supply

Section14.7: Cost-push And Demand-pull Inflation Revisited

Problem 1YTE

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Consider the graphical representation of the Keynesian cross for a hypothetical country, where the planned aggregate
spending line is graphed against the 45° line. Suppose that, in this country, there is an autonomous increase in aggregate
spending of $20 billion. Show this change on the graph.

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