Share This Article:

Economic Definition of Keynesian cross. Defined.

Offline Version: PDF

Term Keynesian cross Definition: The standard diagram used in Keynesian economics to identify the equilibrium level of aggregate output (that is, gross domestic product), with aggregate expenditures measured on the vertical axis, and aggregate output measured on the horizontal axis. This diagram contains two key lines, the aggregate expenditure line and the 45-degree line. Intersection between these lines indicates equilibrium aggregate output. This intersection, or cross, is what gives rise to the name.

 

« Keynesian aggregate supply curve | Keynesian disequilibrium »

Permalink: https://glossary.econguru.com/economic-term/Keynesian+cross

Alphabetical Reference to Over 2,000 Economic Terms