Question : According to this approach, the equilibrium level of income in an economy is determined where aggregate demand is equal to aggregate supply.
Option 1: Aggregate demand and aggregate supply approach
Option 2: Savings and investment approach
Option 3: Both A and B
Option 4: Neither A nor B.
Answer (1)
24th Jan, 2024
Correct Answer:
Aggregate demand and aggregate supply approach
Solution :
According to aggregate demand and aggregate supply approach, the equilibrium level of income in an economy is determined where aggregate demand is equal to aggregate supply.
Hence, Option A is correct.
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