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

question 115

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.

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