Macro Economics: Determination of Income and Employment
Question:
Match the following:
Options:
i-d, ii-c, iii-a, iv-b
i-d, ii-c, iii-b, iv-a
i-d, ii-a, iii-c, iv-b
i-a, ii-b, iii-c, iv-d
Correct Answer:
i-d, ii-c, iii-a, iv-b
Explanation:
(i-d) If income increases, savings increases. (ii-c) AD and AS approach is one of the ways of determining equilibrium. The other approach is S-I approach. (iii-a) Deficient demand happens when economy is operating at a level below the full employment. (iv-b) Moral suasion is an advice by RBI to banks in matter related to lending and other matters via discussions and letters to commercial banks