What are two alternative ways of determining equilibrium level of income? How are these related?
CBSE DELHI RE- PAPER SET 3 2018
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Two alternative ways of determining equilibrium level of income are:
- Aggregate Demand - Aggregate Supply Approach (AD - AS Approach).
- Saving - Investment Approach (S - I Approach).
AD = AS (AD - AS approach)
C + I = C + S
I = S (S - I approach).
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