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

question 51

Multiple Choice

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

• A) Y = PAE
• B) I > I ^P
• C) I < I ^P
• D) PAE = C + I ^P+ G + NX
• E) Y = Y*

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