In the Keynesian cross diagram the 45 line represents the short run equilibrium

# In the keynesian cross diagram the 45 line represents

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79.In the Keynesian cross diagram the 45° line represents the short-run equilibrium condition that: A. Y = PAE B. I > I PC. I < I PD. Y* = Y Subscribe to view the full document.

80.The expenditure line in the Keynesian cross diagram represents the: 81.In the basic Keynesian model a decline in autonomous spending: Subscribe to view the full document. 82.Refer to the figure above. Based on the figure and starting from an initial short-run equilibrium where output equals 20,000, if autonomous consumption spending decreases by 1,000, then the new short-run equilibrium is at an output (Y) equal to: Subscribe to view the full document.

83.Refer to the figure above. Based on the figure and starting from an initial short-run equilibrium where output equals 20,000, if autonomous consumption spending increases by 1,000, then the new short-run equilibrium is at an output (Y) equal to: A. 24,000 B. 6,000 C. 14,000 D. 16,000 84.Refer to the figure above. Based on the figure, if the economy is in short-run equilibrium with output equal to 16,000, then there is a(n) _____ gap and a _____ in government spending would return the economy to potential output (Y*). Subscribe to view the full document.

85.Refer to the figure above. Based on the figure, if the economy is in short-run equilibrium with output equal to 24,000, then there is a(n) _____ gap and a _____ in government spending would return the economy to potential output (Y*). 86.Refer to the figure above. Based on the figure, the income-expenditure multiplier in the economy illustrated equals: Subscribe to view the full document.

87.Refer to the figure above. If planned aggregate expenditure (PAE) in an economy equals 1,000 + .9Y and potential output (Y*) equals 9,000, then this economy has: A. an expansionary gap. B. a recessionary gap. C. no output gap. D. no autonomous expenditure. 88.Refer to the figure above. If planned aggregate expenditure (PAE) in an economy equals 2,000 + .8Y and potential output (Y*) equals 11,000, then this economy has: Subscribe to view the full document.  • Fall '14
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