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    In the Keynesian Cross Diagram, the 45° Line Represents the Short-Run
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In the Keynesian Cross Diagram, the 45° Line Represents the Short-Run

Question 104

Question 104

Multiple Choice

In the Keynesian cross diagram, the 45° line represents the short-run equilibrium condition that:


A) Y = PAE.
B) PAE = C + Ip + G + NX.
C) I ≠ Ip.
D) Y* = Y.

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