To graphically represent this, you can create a simple Keynesian cross diagram. On the vertical axis, plot the national income (Y), and on the horizontal axis, plot the aggregate expenditure (C + I + G). The equilibrium point will be where the aggregate expenditure line intersects the 45-degree line representing national income. add explanation
To graphically represent this, you can create a simple Keynesian cross diagram. On the vertical axis, plot the national income (Y), and on the horizontal axis, plot the aggregate expenditure (C + I + G). The equilibrium point will be where the aggregate expenditure line intersects the 45-degree line representing national income. add explanation
Chapter19: The Keynesian Model In Action
Section: Chapter Questions
Problem 4SQ
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To graphically represent this, you can create a simple Keynesian cross diagram. On the vertical axis, plot the
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ISBN:
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Author:
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Publisher:
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