Question

where equilibrium is present in Keynesian thoery
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Answer 1

Answer:

In words, the equilibrium level of real GDP, Y*, is equal to the level of autonomous expenditure, A, multiplied by m, the Keynesian multiplier. Because the mpc is the fraction of a change in real national income that is consumed, it always takes on values between 0 and 1.

Answer 2

Answer:

As real national income Y rises, so does the level of aggregate expenditure. The Keynesian condition for the determination of equilibrium real GDP is that Y = AE. This equilibrium condition is denoted in Figure by the diagonal, 45° line, labeled Y = AE.