AP-Macroeconomics-Visuals-Unit3 - Simple Keynesian Model Planned aggregate expenditure = C I G NX 45 degree line all points where production(real GDP =

AP-Macroeconomics-Visuals-Unit3 - Simple Keynesian Model...

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Unit 3 : Macroeconomics National Council on Economic Education Visual 3.1 Simple Keynesian Model Planned aggregate expenditure = C + I + G + NX 45 degree line: all points where production (real GDP) = aggregate expenditure Equilibrium occurs where planned aggregate expenditure equals production
Unit 3 : Macroeconomics National Council on Economic Education Visual 3.2 Equilibrium and Disequilibrium in the Keynesian Model
Unit 3 : Macroeconomics National Council on Economic Education Visual 3.3 Saving and Dissaving
Unit 3 : Macroeconomics National Council on Economic Education Visual 3.4 Increase in Investment Investment increases from I to I1. Output increases from Y to Y1.
Unit 3 : Macroeconomics National Council on Economic Education Visual 3.5 Investment Demand Interest rate decreases from r to r1.

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