Keynesian Cross Diagram. Keynesian cross equilibrium in the goods market occurs when expenditure equals production. The keynesian cross diagram contains two lines that serve as conceptual guideposts to orient the discussion.
The keynesian cross diagram is a formulation of the central ideas in keynes general theory. E1 is the initial equilibrium of the goods market. The keynesian cross diagram depicts the equilibrium level of national income in the g s market model.
It is graphically represented by the keynesian cross which is the graph of expenditure and output level.
The keynesian cross diagram contains two lines that serve as conceptual guideposts to orient the discussion. Potential gdp means the same thing here that it means in the ad as diagrams. This article provides keynesian expertise guide to the model of aggregate demand in an economy. A graphical depiction created by students of keynes in order of exposition for his basic ideas.
