📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    According to Keynesian theory, the equilibrium level of

    income and output in an economy is determined by the intersection of:
    A Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS) Correct Answer Incorrect Answer
    B Aggregate Demand (AD) and Aggregate Supply (AS) Correct Answer Incorrect Answer
    C Total Investment and Government Spending Correct Answer Incorrect Answer
    D Money Supply and Interest Rates Correct Answer Incorrect Answer

    Solution

    Both the AD–AS approach and the Saving–Investment approach lead to the same equilibrium level of national income.

    Practice Next
    More Research Questions
    ask-question