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The graph below is called the 45 line diagram, which is sometimes known as the Keynesian cross diagram. Assume that the diagram below shows the
The graph below is called the 45 line diagram, which is sometimes known as the Keynesian cross diagram. Assume that the diagram below shows the short-run aggregate expenditure curves AE1 and AE2 and the aggregate supply curve Y = AE for Australia's economy. List and discuss one factor that would cause the economy to move from point N to point K. Would the movement from point N to point K be described as economic growth or expansion? Explain. List and discuss two factors that would cause a movement from point J to point K.
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