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2. THE KEYNESIAN THEORY OF DETERMINATION OF …

CA Inter_Economics for Finance_The Keynesian Theory _____2.6 No.1 for CA/CWA & MEC/CEC MASTER MINDS From the above graph a) The 45° line (Y = C+I) is drawn to split the positive quadrant of the graph and shows the income-consumption relation with Y = C (AD = Y) at all levels of income.

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