☰
✕

Determination of Income and Employment
Question
Wired Faculty App

What is equilibrium income?

Answer

Equilibrium level of income is that level of income where aggregate demand equals aggregate supply (AD = AS) and planned savings equal planned investment (S = I).

Sponsor Area

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?