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Use a graph of the Keynesian cross?


Use a graph of the Keynesian cross
to show the effects of an increase in planned
investment on the equilibrium level of
income/output.

it refers to the Keynesian 45 degrees diagram where Ex=Y is plotted as income = expenditure. so u draw it 45 degrees from both axes (exactly in between). then u draw da initial C+I function and the new C+ I (increased) function. u will see the change in investment and the resulting change in output/income

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