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

question 105

Multiple Choice

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

• A)Y = PAE.
• B)PAE = C + I^p + G + NX.
• C)I I^p.
• D)Y* = Y.