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Significance of 45 degree line in …

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Significance of 45 degree line in Keynesian economics

Posted by Dhruv Damor 7 years, 8 months ago

CBSE > Class 12 > Economics

1 answers

Anshika Aggarwal 7 years, 8 months ago

The significance of 45 degree line is just to show the equal proportionate change between consumption and income. It works like a reference line to show the situations of excess income over consumption or excess consumption over income, so that what would happen with the production of output will be determined.

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