Economics · Determination of Income and Employment
In a simple Keynesian macroeconomic model, the equilibrium level of output (Y) is determined by:
- 1Full employment level
- 2Excess demand condition
- 3Marginal output level
- 4Equality of Aggregate Income (Y) with Aggregate Demand (AD)✓
Correct answer
Equality of Aggregate Income (Y) with Aggregate Demand (AD)
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