Shocks affect real aggregate income

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According to the Keynesian Cross model, how would each of the following shocks affect real aggregate income (Y) in the short run, all else equal? For each shock, be sure to clearly state a predicted direction of change for income, illustrate your prediction with a Keynesian CrossDiagram, and explain your predictions intuitively in words.

a. Government purchases decline

b. Congress cuts household income taxes

c. Autonomous consumption increases

d. Total factor productivity increases

Reference no: EM131426843

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