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.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q21: In the short-run Keynesian model where the
Q27: A fiscal policy action to close an
Q30: Planned aggregate expenditure (PAE) equals:<br>A)C + I<sup>p</sup>
Q56: Changes in autonomous consumption could be the
Q64: If short-run equilibrium output equals 10,000, the
Q66: If short-run equilibrium output equals 10,000, the
Q80: Unplanned inventory investment equals zero when:<br>A)planned investment
Q101: In the Keynesian model, it is assumed
Q109: In Macroland autonomous consumption equals 100, the
Q134: Changes in taxes and transfers affect planned