Keynesian Cross Diagram Calculator. C i g ad and actual gdp gdpa can all be read off the y axis. Please review a previous post on the construction of the keynesian cross or 45 degree line and how inventorieswork for more information.
This particular post is going over the process to find the equilibrium value mathematically assuming that you are given the marginal propensity to consume value investment value government spending value. More on shifting aggregate planned expenditures. Figure 21 2 a keynesian cross diagram the 45 degree line simply represents the equilibrium y y ad.
The y axis is measured in dollars per year.
This particular post is going over the process to find the equilibrium value mathematically assuming that you are given the marginal propensity to consume value investment value government spending value. Economics macroeconomics keynesian approaches and is lm the keynesian cross the expenditure output or keynesian cross model use a diagram to analyze the relationship between aggregate expenditure and economic output in the keynesian model. More on shifting aggregate planned expenditures. The other line the aggregate demand function is the consumption function line plus planned investment spending i.
