The graph below is called the 45 line diagram, which is sometimes known as the Keynesian cross diagram. Assume that the diagram below shows the short-run aggregate expenditure curves AE1 and AE2 and the aggregate supply curve Y = AE for Australia's economy. List and discuss one factor that would cause the economy to move from point N to point K. Would the movement from point N to point K be described as economic growth or expansion? Explain. List and discuss two factors that would cause a movement from point J to point K.

Real aggregate expenditure, AE Y - AE AE2 N AE, L K 450 O Real GDP. Y