Macroeconomic model reference
Keynesian Cross Model
The 45-degree line model where planned expenditure E = C + I + G intersects the identity line Y = E to determine short-run equilibrium output. The gap between spending and income drives inventory adjustment until the two converge.
Theory-based models · Derivation
Keynesian Cross derivation: assumptions and equations
Trace the Keynesian Cross derivation through assumptions, notation, equations, and failure cases.