Multiple Choice
In the Keynesian cross diagram, the ________ line shows the relationship between planned aggregate expenditure and output, and the ________ line represents the condition that planned aggregate expenditure and output are equal.
A) consumption function; 45-degree
B) 45-degree; consumption function
C) expenditure; 45-degree
D) 45 degree; expenditure
Correct Answer:

Verified
Correct Answer:
Verified
Q49: In the short-run Keynesian model, to close
Q50: When real output increases, planned aggregate expenditures
Q51: If firms sell more output than expected,
Q52: Government policies intended to increase planned spending
Q53: The portion of planned aggregate expenditure that
Q55: The assumption that firms meet the demand
Q56: Changes in autonomous consumption could be the
Q57: Short-run equilibrium output is the level of
Q58: The expenditure line in the Keynesian cross
Q59: For an economy starting at potential output,