The Keynesian Cross
The Keynesian Cross
The Keynesian Cross
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<strong>The</strong> <strong>Keynesian</strong> <strong>Cross</strong> 21<br />
Aggregate<br />
Expenditure<br />
($ trillion)<br />
10<br />
8<br />
2.5<br />
2<br />
0<br />
45º<br />
Figure 7<br />
8<br />
A<br />
Z<br />
10<br />
Y = AE<br />
AE 1 = $2 trillion <br />
(0.75 output)<br />
Output<br />
($ trillion)<br />
AE 2=<br />
$2.5 trillion <br />
(0.75 output)