Practicing Success
Read the following statements - Assertion (A) and Reason (R)carefully and choose the correct alternative given below: |
Both Assertion (A) and Reason (R ) are true and Reason(R) is the correct explanation of Assertion (A) Both Assertion (A) and Reason (R ) are true and Reason(R) is not the correct explanation of Assertion (A) Assertion (A) is true but Reason (R ) is false Assertion (A) is false but Reason (R ) is true |
Both Assertion (A) and Reason (R ) are true and Reason(R) is not the correct explanation of Assertion (A) |
According to Keynesian theory, equilibrium is determined in terms of Aggregate demand and Aggregate supply. Income and employment are in equilibrium at that level at which AD=AS. Equilibrium can be determined through S and I approach. Since, AD = C + I and AS = C + S We know equilibrium is when AD = AS, so C + I = C + S Therefore, I = S |