In the Keynesian cross diagram, the 45-degree line represents the short-run equilibrium condition that: A)Y = PAE. B)PAE = C + I^p + G + NX. C)I I^p. D)Y* = Y.

Name: In the Keynesian cross diagram, the 45-degree line represents the short-run equilibrium condition that: A)Y = PAE. B)PAE = C + I p + G + NX. C)I I p . D)Y* = Y.
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The 45-degree line in the Keynesian cross diagram represents the condition where actual output (Y) equals planned aggregate expenditure (PAE), indicating short-run equilibrium.

In the Keynesian Cross Diagram, the 45-Degree Line Represents the Short-Run