Q1 of 25 Page 4

Define autonomous investment

Autonomous investment is the investment that is not affected by the changes in the level of income and is not induced solely for the motive of profit. It is income elastic.


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2

What is the equilibrium income?

 3

Define Aggregate Supply.

 4

Define induced investment.

 5

The sum total of APC and APS is always equal to one, even when APC >1. Is it true?