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What does the aggregate demand-aggregate supply (AD-AS) approach focus on to determine the equilibrium level of income?
  • a)
    Consumption and saving
  • b)
    Consumption and investment
  • c)
    Investment and government expenditure
  • d)
    Savings and government expenditure
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
What does the aggregate demand-aggregate supply (AD-AS) approach focus...
The AD-AS approach focuses on the equilibrium level of income where aggregate demand (C + I) equals aggregate supply.
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What does the aggregate demand-aggregate supply (AD-AS) approach focus on to determine the equilibrium level of income?a)Consumption and savingb)Consumption and investmentc)Investment and government expenditured)Savings and government expenditureCorrect answer is option 'B'. Can you explain this answer?
Question Description
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