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In the Keynesian Cross, Macroeconomic Equilibrium Occurs Where

Question 34

Multiple Choice

In the Keynesian cross, macroeconomic equilibrium occurs where:


A) real GDP is below the aggregate expenditure line.
B) potential GDP meets the 45-degree line.
C) aggregate expenditure line meets the 45-degree line.
D) aggregate expenditure line is below the 45-degree line.

Correct Answer:

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