CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon


Question

 In determination of Equilibrium Level of Income by AD-AS approach, AD curve is represented by ____________.


A
(C + S) curve
loader
B
(C + I) curve
loader
C
(S + I) curve
loader
D
(C +Y) curve
loader

Solution

The correct option is A (C + S) curve

Aggregate Demand refers to the desired level of expenditure in the economy during an accounting year. It is what people wish to spend on the purchase of goods and services during an accounting year.

The Ad curve in income determination analysis represents a two sector economy which only includes the expenditure made by the consumer sector and the producer sector.

Therefore, aggregate demand = consumption + investment = C + I.


Economics

Suggest Corrections
thumbs-up
 
0


similar_icon
Similar questions
View More


similar_icon
People also searched for
View More



footer-image