Question:
In the Keynesian Economics, ____ starts from the origin and is always drawn at an angle of 45°.
In the Keynesian Economics, ____ starts from the origin and is always drawn at an angle of 45°.
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The 45° line is crucial in Keynesian economics to analyze the relationship between income and expenditure.
Updated On: Jun 19, 2025
- Consumption curve
- Aggregate demand curve
- Reference line
- Investment curve
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The Correct Option is C
Solution and Explanation
In Keynesian Economics, the 45° line, also called the reference line, represents the point where the level of income equals the level of expenditure. This line shows the equilibrium level of income in an economy.
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