Study Problem:
 
Linking the Keynesian Cross
with the Production Possibilities Frontier

 
Keynes

Answers to the multiple-choice questions:
     1. This particular Yeq correspnds to a point on the PPF.
     2. The labor market clears ( that is, S = D ) at the "going wage."
3. A
4. C
5. D
6. D
7. A
8. C