Question : According to this approach, the equilibrium level of income is determined at a level where planned saving is equal to planned investment.
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.
Correct Answer: Savings and investment approach
Solution : According to savings and investment approach, the equilibrium level of income is determined at a level where planned saving is equal to planned investment. Hence, Option B is correct
Question : According to this approach, the equilibrium level of income in an economy is determined where aggregate demand is equal to aggregate supply.
Question : In the Keynesian theory of income determination, equilibrium income is achieved when:
Question : Effective demand refers to that level of aggregate demand which becomes effective because it is equal to aggregate supply.
Question : It refers to a situation where the aggregate demand is equal to aggregate supply at full employment level.
Question : According to Keynesian Theory, the equilibrium level of income is determined at a level when:
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