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AP® Macroeconomics

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Keynesian Cross and AD

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How are the Keynesian Cross model and Aggregate Demand (AD) related?

A

The Keynesian Cross refers to the part of the Aggregate Supply curve that crosses the Aggregate Demand curve indicating equilibrium.

B

The Keynesian Cross refers to the spot on the Aggregate Demand curve where it turns vertical.

C

The Keynesian Cross refers to the spot on the Aggregate Demand curve where it becomes vertical.

D

The Keynesian Cross uses Aggregate Expenditures for part of the graph and AE=AD.

E

The Keynesian Cross to predict the impact of inflation given a certain Aggregate Demand.