Final answer:
The Keynesian Cross model represents the relationship between aggregate expenditure and economic output. The labor market (WS-PS) shows what happens in the labor market, specifically the interaction between the wage rate and the quantity of labor supplied.
Step-by-step explanation:
In economics, the Keynesian Cross model represents the relationship between aggregate expenditure and economic output. It shows how changes in aggregate expenditure affect the level of output in the economy.
On the other hand, the labor market (WS-PS) represents what happens in the labor market, specifically the interaction between the wage rate (WS) and the quantity of labor supplied (PS).