Keynesian cross and the aggregate demand

Reference no: EM13698218

Our recent recession seems to demonstrate again that expenditures and incomes depend on each other. If markets do not self adjust, how can a decline in spending lead to a negative process that ruins an economy? (Consider referencing the "Keynesian Cross" and the " Aggregate Demand/ Aggregate Supply Diagram" to illustrate your points)

Reference no: EM13698218

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