Shaalaa.com | Determination of income and employment Part 1
Derive the two alternative conditions of expressing national income equilibrium. Show these equilibrium conditions on a single diagram.
Given consumption curve, derive saving curve and state the steps taken in the process of derivation. Use Diagram.
Explain national income equilibrium through aggregate demand and aggregate supply. Use diagram. Also explain the changes that take place in an economy when the economy is not in equilibrium
Explain the concept of 'excess demand' in macroeconomics. Also explain the role of 'open market operation' in correcting it.