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Expenditure Method

Aggregate Sup...

Question

Aggregate Supply and __________ are always equal.

A

National Income

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B

Aggregate Demand

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C

Marginal Propensity to save are always equal.

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D

Average Propensity to Consume

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Solution

The correct option is A National Income
Aggregate supply refers to the desired level of output in the economy during an accounting year. It is through this output only that the producer sector generates income. Therefore, aggregate supply= consumption + savings.

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