in the keynesian model equilibrium national income\na. occurs when the marginal propensity to consume equals…

in the keynesian model equilibrium national income\na. occurs when the marginal propensity to consume equals the multiplier.\nb. equals planned consumption, investment, government, and import expenditures.\nc. equals planned consumption, investment, government, and net export expenditures.\nd. occurs at the point where the consumption function crosses the 45 - degree line.

in the keynesian model equilibrium national income\na. occurs when the marginal propensity to consume equals the multiplier.\nb. equals planned consumption, investment, government, and import expenditures.\nc. equals planned consumption, investment, government, and net export expenditures.\nd. occurs at the point where the consumption function crosses the 45 - degree line.

Answer

Brief Explanations:

In the Keynesian model, equilibrium national income occurs at the point where aggregate expenditure (planned consumption, investment, government, and net - export expenditures) equals national income. Graphically, it is where the aggregate expenditure function crosses the 45 - degree line which represents the equality of aggregate expenditure and income. Option A is incorrect as there is no such relationship for equilibrium. Option B is wrong because it includes imports instead of net exports. Option C has an incorrect formula for equilibrium national income. Option D is correct as it correctly states the graphical condition for equilibrium in the Keynesian model.

Answer:

D. occurs at the point where the consumption function crosses the 45 - degree line.