equilibrium income

What Is Keynesian Model Of Income Determination?

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What Is Keynesian Model Of Income Determination? According to Keynesian model, the equilibrium level of national income is determined at a point where the aggregate demand curve intersects the aggregate supply curve. … By definition, output equals income on each point of aggregate supply curve. How income is determined in the simple Keynesian model? Keynes

Why Is There An Equilibrium In The Economy When As AD?

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Why Is There An Equilibrium In The Economy When As AD? Higher price levels will induce producers to increase their output. … The amount of output supplied will be greater than aggregate demand. Prices will begin to fall to eliminate the surplus output. As prices fall, the amount of aggregate demand increases and the economy