Advertisements
Advertisements
Questions
What is meant by Equilibrium income?
What is equilibrium income?
Advertisements
Solution
The equilibrium level of income is determined where aggregate demand is equal to aggregate supply in the economy. Graphically, it is a point where the AD curve and the AS curve intersect each other.
APPEARS IN
RELATED QUESTIONS
Explain how government spending can be helpful in removing deficient demand.
Derive the two alternative conditions of expressing national income equilibrium. Show these equilibrium conditions on a single diagram.
Why does consumption curve not start from the origin?
What is meant by inflationary gap?
Explain the concept of deflationary gap.
Explain the role of Cash Reserve Ratio in removing an inflationary gap
What is a ‘consumption function’?
State with reason whether you agree or disagree with the following statements. (any Three)
Aggregate demand depand only on the consumption expenture.
How will you derive the autonomous expenditure multiplier when the price of final goods and the rate of interest are given?
Answer in detail.
Explain the equilibrium between Aggregate Demand and Aggregate Supply.
Discuss the working of the adjustment mechanism in the following situations:
Aggregate demand is greater than the aggregate supply.
Choose the correct from given options
When aggregate demand is greater than aggregate supply, inventories
In a closed economy, aggregate demand is the sum of ______.
How is it determined by using Saving and Investment approach?
Which of the following are the definitions of money supply in India?
A decrease in Cash Reserve Ratio will lead to ______
Which of the following statement is true?
Aggregate demand can be increased by:
If aggregate demand exceeds aggregate supply in a situation of full employment, what will be its impact on the economy?
