Thx for answering before...
This time I can find a anything about the 45 degree model which I have to charaterize!
I'm not quite sure what you mean by "characterize" so I can only hope the following will help you:
http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=Keynesian+cross
To characterize a 45-degree model, it is important to understand its basic components and how they relate to each other. The 45-degree model, also known as the Keynesian cross, is a simple graphical representation of the equilibrium level of income in an economy.
Here's how you can go about characterizing the 45-degree model:
1. Start by understanding the basic diagram: Draw a 45-degree line from the origin, representing the line where aggregate expenditure and income are equal. This line represents equilibrium in the model.
2. Understand the components: In this model, aggregate expenditure (AE) is composed of consumption (C) and investment (I). Consumption is typically represented as a function of income, such as C = a + bY, where "a" is autonomous consumption and "b" is the marginal propensity to consume.
3. Determine the equilibrium level of income: Equilibrium occurs when aggregate expenditure equals income on the 45-degree line. So, set AE equal to Y and solve for the equilibrium level of income.
4. Analyze the effects of changes: Once you have the basic model set up, you can make changes to different components to see how it affects the equilibrium level of income. For example, if there is an increase in autonomous consumption or investment, it will shift the AE curve upward, leading to a higher equilibrium level of income.
5. Use the Keynesian cross to analyze the impact of fiscal policy: The 45-degree model is often used to understand the impact of fiscal policies, such as changes in government spending or taxes. By representing these changes as shifts in the AE curve, you can analyze how they influence the equilibrium level of income.
I hope this helps you in characterizing the 45-degree model. Let me know if you have any further questions!