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Determination of Income and Employment
Question
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What is meant by equilibrium?

Answer

Equilibrium literally means state of balance. Equilibrium between AD and AS occurs when at a particular price level, aggregate demand equals aggregate supply.

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Some More Questions From Determination of Income and Employment Chapter

State relationship between income and consumption.

What is Breakeven point?

What are the types of Propensity to consume?

How does MPC affect level of income?

Distinguish between APC and MPC, The value of which of APC and MPC can be greater than one and when?