Q2 of 25 Page 4

What is the equilibrium income?

Equilibrium income is the level of income where the aggregated demand is equal tot he aggregate supply. AD=AS. The planned savings are always equal to plan investment.


More from this chapter

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1

Define autonomous investment

 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?