Macroeconomics: Determination of Income and Employment · Class 12 · CBSE · Commerce Economics
In a two-sector economy, equilibrium level of income is determined at the level where:
Practice question from Macroeconomics: Determination of Income and Employment (Class 12 · CBSE · Commerce Economics), with the correct answer and a step-by-step solution.
easy · MCQ · Q-FB4036
In a two-sector economy, equilibrium level of income is determined at the level where:
- A.Consumption is equal to saving
- B.Planned aggregate demand is equal to planned outputCorrect answer
- C.Investment is equal to consumption
- D.Saving is equal to income
Solution
Equilibrium income is reached when planned aggregate demand equals planned output, so there is no unintended accumulation or depletion of inventories.
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