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Its a line lol

A guideline used in Keynesian economics in conjunction with the consumption line (to derive saving) and the aggregate expenditures line (to identify Keynesian equilibrium). This guideline forms a 45-degree angle with both the horizontal income axis and the vertical consumption expenditure (or aggregate expenditures) axis in the Keynesian graphical analysis.

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12y ago
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5mo ago

In economics, the 45-degree line represents equality between two variables, typically income and consumption. It shows where the values of the two variables are equal, meaning that when a point is on the line, income equals consumption. This line is used in macroeconomic models like the Keynesian Cross to analyze the relationship between income and spending.

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Q: What is the 45 degree line in economics?
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