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Can you explain AD and AS …

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Can you explain AD and AS approach for me!

Posted by Abhishek Relan 7 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

Anjalu Rawat 7 years, 11 months ago

According to the keynesian theoryv, the equilibrium level of income in an economy is determined when agrrgate demand , represent by ( C+I ) curve is equal to the total output ( Aggregate supply or AS ). Aggregate demand comprised of two components. - Consumption expenditure :- It varies directly with the level of income consumption rises with increase in income . - Investment expenditure :- It is assumed to be independent of the level of income investment expenditure is autonomous.

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