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Question
What is equilibrium income?
Options
The equilibrium income is defined as the level of income where AD = AS
Planned savings is always = to the planned investment
Both The equilibrium income is defined as the level of income where AD = AS and Planned savings is always = to the planned investment.
None of the above
MCQ
Solution
Both (1) and (2)
Explanation:
The level of income known as equilibrium income is defined as AD = AS, which indicates aggregate demand equals aggregate supply. The intended investment is always equal to the projected savings.
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