PART I: MULTIPLE-CHOICE QUESTIONS Figure 1 is a graphical representation of the Keynesian cross model with marginal propensity to consume constant and illustrative numbers. PE 450 1500 1300 - - AG = 100 AY = 200 750 650 1300 1500 Figure 1 Figure 1 shows two macroeconomic equilibria, one of them resulting from an increase in government spending. Potential output (not shown in Figure 1) is Yo = 2000