Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Determination of Income and Employment

Question:

What is the relation between aggregate demand and income?

Options:

Positive relation

Negative relation

No relation

Can't say anything

Correct Answer:

Positive relation

Explanation:

There is a positive relation between income and aggregate demand i.e. aggregate demand increases with the rise in income level. The curve has a positive slope.