The Keynesian-cross model is based on the idea that the ____ must equal total output.
A)components of consumption
B)components of aggregate supply
C)components of aggregate demand
D)net exports

Question

The Keynesian-cross model is based on the idea that the ____ must equal total output.
A)​components of consumption
B)​components of aggregate supply
C)​components of aggregate demand
D)​net exports

Quizplus · Accepted Answer

The Keynesian-cross model is based on the relationship between aggregate demand and total output. In the model, total output is seen as the level of output at which aggregate demand, which is made up of consumption, investment, government spending, and net exports, is equal to total output. Therefore, the correct answer is "the components of aggregate demand."

The Keynesian-Cross Model Is Based on the Idea That the ____